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Journal of Commerce and Management Thought
Year : 2021, Volume : 12, Issue : 4
First page : ( 189) Last page : ( 208)
Print ISSN : 0975-623X. Online ISSN : 0976-478X.
Article DOI : 10.5958/0976-478X.2021.00014.8

Impact of Covid-19 on Traditional –Mining Exports from Peru

Apaza Carmen R.

PhD Professor, Universidad César Vallejo Lima, Perú

JEL: F130, F410, O130

Online published on 1 February, 2022.

Abstract

The COVID-19 pandemic caused a drop in real world GDP in 2020 to -3.5%, mainly due to the decrease in production and international trade. In Peru, the impact of COVID-19 was marked by a drop in exports in general, being thee xports of mining products which fell by more than 200%.

This study analyzes the impact of COVID-19 on mining exports during the period of sanitary isolation by COVID-19.

The empirical strategy of the study is based on the use of an econometric model of Ordinary least squares (OLS)with time series.

The results of the investigation indicate that mining exports were negatively affected during the period of sanitary isolation by the COVID-19 pandemic. However, the measure given by the Peruvian government on June 30, 2020, through Supreme Decree No. 117-2020-PCM, to resume all mining activitiescaused a positive effect on mining exports. Likewise, this study finds thatcopper and gold exports, as well as the percentage change in China's GDP play a significant role in the performance of Peru's mining exports. However, both the international price of copper and gold were not significant at 95%.

The findings of this study imply that the government should promote the responsible production of these minerals, always with a responsible social commitment to care for the environment; and with a look to the future, the development of copper and gold industrialization should be promoted in order to advance towards the levels of a developed economy.

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Keywords

COVID-19, Exports -traditional, Mining products, Copper, Gold.

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