OECD Trade Policy Papers

ISSN :
1816-6873 (online)
DOI :
10.1787/18166873
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This series is designed to make available to a wider readership selected trade policy studies prepared for use within the OECD.

NB. No. 1 to No. 139 were released under the previous series title OECD Trade Policy Working Papers.

 

Mineral Resource Trade in Chile

Contribution to Development and Policy Implications You or your institution have access to this content

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Author(s):
Jane Korinek
Publication Date
01 Mar 2013
Bibliographic information
No.:
145
Pages
58
DOI
10.1787/5k4bw6twpf24-en

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Mineral resources present a formidable source of wealth but a formidable challenge to regulate in order to maximize social welfare from their extraction. Some resource-rich countries, such as Chile, have been successful in developing their economies and managing their revenue streams effectively. Strong institutions and regulatory oversight have helped to capitalize on the benefits of the mining sector for economy-wide growth and development in Chile. This paper identifies some of the good practice areas in mining regulation in Chile whose economy has shown strong growth over most of the last two decades. Some of the areas touched on in this paper are the taxation of the minerals sector, management of the tax revenue, and policies designed to foster spillovers into other sectors of the economy and make the most of Chile’s comparative advantage as a long-time global leader in the copper industry. The paper concludes that there is much to be learned from the Chilean experience in regulating its mining sector and many areas where it could be well used as a model for other mineral rich economies wishing to develop their mining sectors to enhance economy-wide growth.
Keywords:
legal framework, exploitation permits, resource-rich, exchange rates, royalties, spillovers, natural resource, innovation, Chile, mineral wealth, government revenue, mineral deposits, non-renewable, sovereign wealth funds, geological service, regulation, resource curse debate, extractive industries, industry standards, exploration, price volatility, structural balance rule, mining, SWF, world-class suppliers, Ley Reservada del Cobre, fiscal responsibility, tax revenue management, mining services, taxation, export restrictions, capital-intensive, copper
JEL Classification:
  • O13: Economic Development, Technological Change, and Growth / Economic Development / Agriculture; Natural Resources; Energy; Environment; Other Primary Products
  • O19: Economic Development, Technological Change, and Growth / Economic Development / International Linkages to Development; Role of International Organizations
  • Q32: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Nonrenewable Resources and Conservation / Exhaustible Resources and Economic Development
  • Q33: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Nonrenewable Resources and Conservation / Resource Booms
  • Q37: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Nonrenewable Resources and Conservation / Issues in International Trade
  • Q38: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Nonrenewable Resources and Conservation / Government Policy