Cost effects of the latest mining boom on emerging economies

Abstract

An input–output approach is used to identify the impact of the last mining boom (2000–08) on the cost and prices of mining industry products in four BRICS countries (Brazil, Russia, India and China). Using input–output tables and environmental information from the World Input–Output Database (WIOD), the analysis points to higher costs in emerging economies due to higher wages, slower technical progress, positive pass-through of oil shocks and partial sequential depletion processes in industrial minerals.