Local Socieconomic Impacts of Large-scale Mining Projects in Ecuador: The Case of Fruta del Norte

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Jan 2023
This study seeks to determine whether the Fruta del Norte project affected the main economic and social indicators of the Yantzaza canton, where the large-scale mining project is located. To do so, the analysis centers on key economic variables (such as business productivity and employment) and development variables (such as health and school enrollment). The specific methodology used is a synthetic control model, which enables the generation of a counterfactual for the treated canton. The findings suggest that Fruta del Norte had a positive impact on local economic activity in Yantzaza. The local economic dynamism spurred by Fruta del Norte had positive effects on local formal employment; however, increases in the rates of school dropout and adolescent pregnancy were observed.