Mining and Productive Specialization: Economic Impacts of the Collapse of the Dam of Fundão in Mariana/Brazil

Authors

DOI:

https://doi.org/10.13037/gr.vol38n114.7318

Keywords:

Productive Specialization, Collapse of the Dam of Fundão, Synthetic Control Method

Abstract

This paper analyzes the economic impacts in the municipality of Mariana from the Fundão Dam rupture occurred at the end of 2015. The central hypothesis is that economic dependence on the mineral extraction sector makes this municipality more vulnerable to adverse shocks affecting this productive sector, compromising its job recovery capacity. In order to calculate the impacts of this disaster, datas on formal employment estimated through the Synthetic Control Method were used. The results showed that, although Mariana and its synthetic version show similar formal employment trajectory in the pre-shock period, Mariana recovered employability in the second year after the dam rupture, unlike the control group. However, this result is not due to the recovery of formal employment based on sustainable economic diversification strategies, but essentially by dependence of the mining activity and the post-disaster remediation actions that has been gradually implemented in order to recover affected areas.

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Author Biographies

Jordana Ferreira da Silva, PhD Candidate in Economics - Center for Development and Regional Planning at Federal University of Minas Gerais (UFMG)

PhD student in Economics at the Center for Development and Regional Planning (CEDEPLAR) at the School of Economic Sciences of the Federal University of Minas Gerais (UFMG). Master in Applied Economics from the Graduate Program in Applied Economics (PPEA) and graduated in Economic Sciences from the Federal University of Ouro Preto (UFOP). Topics and Areas of Interest: Economic Growth and Development; Structural Change; Economic Resilience; Regional Economy, Mining Economics.

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Fernanda Faria Silva, Permanent Professor (Departament of Economics) at Federal University of Ouro Preto (DEECO-UFOP)

Doctoral Degree in Economics from Center of Development and Regional Planning, CEDEPLAR/UFMG (2007- 2011). Permanent Professor (Departament of Economics) at Federal University of Ouro Preto (DEECO-UFOP). Visiting Fellow at Centre for Urban and Regional Development Studies (CURDS) - University of Newcastle - UK (Sep 2019 - Aug 2020). Researcher at ResiliRE (UFOP/ CNPq); NUPEDES-UFOP (2015 - actually); Laboratory of Studies on Money and Territory (LEMTe) at CEDEPLAR/ UFMG (2008 - actually). Coordinator of Postgraduate Program in Applied Economics of UFOP (PPEA-UFOP) from 04 January 2016 to 01 April 2018. Coordinator of Emergent Group in Applied Economics (PROPP/ UFOP and CNPq) - (May 2013 - December 2015). Visiting Scholarship Student at University of La Laguna, Spain (September 2009- August 2010). Your research interests issues include: Urban, Rural, and Regional Economics; Economic Geography; Brazilian Economy; Economic Development; Monetary Economics.

Héder Carlos de Oliveira, Permanent Professor (Departament of Economics) at Federal University of Ouro Preto (DEECO-UFOP)

He has a degree in Economics from the Federal University of Viçosa (2002), a Masters in Economics from the Federal University of Minas Gerais (2005), and a PhD in Economics from the Federal University of Minas Gerais (2013), with a Visiting Scholar period at the Centre of Policy Studies/Monash University - Australia. He did postdoctoral research at the School of Economics at Utrecht University (2015-2016). He has experience in the area of Economics, working mainly on the following topics: Economic Development, Inequality and Poverty, Environmental Economics and Quantitative Methods Applied to Economics.

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Published

2022-05-27

How to Cite

Silva, J. F. da, Faria Silva, F. ., & Carlos de Oliveira, H. (2022). Mining and Productive Specialization: Economic Impacts of the Collapse of the Dam of Fundão in Mariana/Brazil. Gestão & Regionalidade, 38(114). https://doi.org/10.13037/gr.vol38n114.7318