From Commodity Discovery to Production
Major resource discoveries have transformed growth prospects for many low-income countries. However, the sharp downturn in commodity prices in recent years is affecting resource investment in these countries, and may delay the development of recent...
| Main Authors: | , , , |
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/09/26790338/commodity-discovery-production http://hdl.handle.net/10986/25134 |
| Summary: | Major resource discoveries have
transformed growth prospects for many low-income countries.
However, the sharp downturn in commodity prices in recent
years is affecting resource investment in these countries,
and may delay the development of recent discoveries into
production. This study investigates lead times from
discovery to production for a unique data set of gold and
copper discoveries worldwide during 1950-2014. The study
employs standard parametric and nonparametric duration
analysis. The results suggest an important role for copper
prices; for instance, an upswing at the time of discovery
can hasten the development of the mine by two to three years
in low-income countries. There appears to be a similarly
beneficial impact on lead times of sounder macroeconomic
policies and quality of governance. |
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