Localisation of Industry in Chile, 1895-1967: Minning Cycles and Satate Policiy

Abstract

Mining cycles have had an enormous impact in the evolution of the localisation of economic activity, in particular of industry, in Chile. The nitrate cycle was characterised by a labour-intensive extraction process and activity which was geographically very concentrated. The copper cycle was geographically more dispersed and its activity more capital-intensive. We stress the role played by the State in the latter de-concentration due to the impact of regional development policies and assess the importance of factor endowments and agglomeration economies, in the localisation of the manufacture.