Mining and productive specialization : economic impacts of the collapse of the Dam of Fundão in Mariana/Brazil.
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Date
2021
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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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Synthetic control method
Citation
SILVA, J. F. da; SILVA, F. F.; OLIVEIRA, H. C. de. Mining and productive specialization: economic impacts of the collapse of the Dam of Fundão in Mariana/Brazil. Gestão & Regionalidade, São Caetano do Sul, v. 38, n. 114, p. 183-206, maio-ago. 2022. Disponível em: <https://seer.uscs.edu.br/index.php/revista_gestao/article/view/7318>. Acesso em: 01 mar. 2023.