Juan Soto-Diaz

Juan Soto-Diaz

Publications

Technology, Geography, and Diversification in a Small Mineral Economy

Published in The Extractive Industries and Society, 2022

When should a policymaker promote economic diversification in resource-rich regions? What are the necessary structural economic conditions for such policies to work? How compatible are regional and national strategies of diversification? This study focuses on the general equilibrium properties of policies that aim to diversify the economic structure of regions through productive linkages with the resource sector. Using Chile, a major mineral exporter, as a case study, and exploiting variation induced by the expansion of the mining industry and the commodity prices super-cycle, we analyze how a shock in the resource sector affects other sectors and regions through productive linkages. The results are utilized in simulating the economic conditions under which regional diversification is an optimal strategy for resource-based economic development. Our results support the need for a multiscalar approach for resource-driven economic development policies by showing that optimal outcomes of diversification policies on economic growth are found when policies combine regional, sectoral, and national strategies for development.

Recommended citation: Lufin, M. and J. Soto-Diaz (2022). "Technology, Geography, and Diversification in a Small Mineral Economy." The Extractive Industries and Society. 11(101080). https://www.sciencedirect.com/science/article/pii/S2214790X22000417

Mining Linkages in the Chilean Copper Supply Network and Regional Economic Development

Published in Resources Policy, 2021

The geographical expansion and increasing complexity of extractive production imply that the effect of mining linkages on economic development is unevenly felt inter- and intra-nationally. This article uses the linkages-based approach to understand from a multi-scalar perspective the uneven development patterns that could arise within a country related to the mining activity. For this purpose, we analyze the strength and potential quality of the mining linkages in the Chilean regions using information from input-output tables between 1995 and 2011 and a sample of almost 4000 mining services suppliers. Results show that the potential for high quality win-win mining linkages in the Chilean mining regions is very weak something that strongly constrains their possibility of achieving sustainable forms economic development.

Recommended citation: Atienza, M., Lufin, M. and J. Soto (2021). "Mining Linkages in the Chilean Copper Supply Network and Regional Economic Development." Resources Policy. 70(101154). https://www.sciencedirect.com/science/article/pii/S0301420717303173

Wage Compensation for Fly‐In/Fly‐Out and Drive‐In/Drive‐Out Commuters

Published in Papers in Regional Science, 2018

The fly‐in/fly‐Out (FIFO) or, drive‐in/drive‐out (DIDO) labour system is a long‐distance commuting work arrangement to attract workers towards remote mineral or fossil fuel extraction areas, where they work in shifts and then return to their usual place of residence located in a different region. Along with more and cheaper transportation alternatives, the use of FIFO/DIDO systems have importantly increased in last decades around the world, which has translated to FIFO/DIDO systems operating even when already established cities are present in extractive regions. This paper uses the case of Chile, one of the most important mining countries in the world, to explore whether and in what extent these labor systems influence wage compensations. We find that FIFO/DIDO commuters obtain an average wage compensation of 2.4 per cent per commuted hour.

Recommended citation: Paredes, D. and J. Soto (2018). "Wage Compensation for Fly‐In/Fly‐Out and Drive‐In/Drive‐Out Commuters." Papers in Regional Science. 97(4). https://rsaiconnect.onlinelibrary.wiley.com/doi/abs/10.1111/pirs.12296

Cities, Wages, and the Urban Hierarchy

Published in Journal of Regional Science, 2016

In this paper, we estimate the size of the wage premium necessary to compensate for remoteness incurred by workers compared to the city size productivity effects. We construct five urban hierarchy tiers for cities in Chile based on their level of remoteness from the urban system. We then contrast the effect generated by these variables on worker wages. We report a positive gradient of wages the higher the size of the urban tier and a loss in wages that can reach 35 percent for more remote cities.

Recommended citation: Soto, J. and D. Paredes (2016). "Cities, Wages, and the Urban Hierarchy." Journal of Regional Science. 56(4). https://onlinelibrary.wiley.com/doi/10.1111/jors.12269