Patricio Aroca // Copper Price Super Cycle and Chilean Growth

Patricio Aroca, patricio.aroca@uai.cl
CEPR, Business School, UAI,
Viña del Mar, CHILE, http://cepr.uai.cl

Main-idea: Quantity versus Price Input-Output Analysis Applied to Mining in Chile



Link to the presentation file: https://ecfor.ru/publication/copper-price-super-cycle-and-chilean-growth/

This presentation happened 2 September 2019, Russia, Sochi at 27th Inforum Conference.

The conference & materials: https://ecfor.ru/27th-inforum-world-conference/

Playlist with the other videos from the conference: https://www.youtube.com/playlist?list=PLJBJFs8UgQgpmWWFzqw87jdwOBQXQmLfu
Inforum’s site: http://www.inforum.umd.edu/

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Inforum, or Interindustry Forecasting at the University of Maryland, was founded nearly 50 years ago by Dr. Clopper Almon, now Professor Emeritus of the University. It is dedicated to improving business planning, government policy analysis, and the general understanding of the economic environment.

The host side was the Institute of Economic Forecasting of the Russian Academy of Sciences. IEF RAS specializes in fundamental, applied and exploratory scientific research in the field of analysis and forecasting of the socio-economic prospects of Russia and its regions, and the development of recommendations and proposals with a goal to improve the quality of economic policy in Russia. The site is https://ecfor.ru.

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Notes:

Motivation
• The importance of copper production in Chilean Economy
• There was a significant growth of copper production previous to the copper price super cycle
• During the copper supper cycle the copper production did not growth significantly.

Policy Implications:

Chilean case (cooper):
• Exploitation concession for 99 years
• The firm get all the extraordinary profits of a super price cycle
• The country get some additional tax on profits, however the share is not big.

Ecuadorian case (oil):
• The agree an exploitation price with the firms
• If the price goes up, the country get the extraordinary earning
• If price goes under the agreement price, the country has to pay the difference.