Mining Industry's Multiplier Effects Cited
For every P1 increase in demand in the mining industry this would increase to P2.6 additional contribution to the domestic economy, according to economist Dr. Bernardo Villegas.
Villegas, founder and director of the Center for Research and Communication (CRC) now University of Asia & Pacific (UA&P), showed his analysis during the recent forum of the Chamber of Mines of the Philippines as he stressed that the mining sector's contribution goes beyond tax revenues and export earnings.
Based on the UA&P study of all major industrial sectors, Villegas said that the mining industry makes a significant contribution, not just to the Philippine economy but also to the "common good."
"The common good is not just the taxes paid by mining firms but employment generation, nurturing of small and medium-scale industries through the multiplier effects, the stimulation of consumption in the communities where various establishments, whatever they are, are located," said Villegas, a business economist who has been following the mining industry since the 1970s.
He noted the multiplier effect of the mining industry translates to a P2.6 additional contribution to the domestic economy for every P1 peso increase in demand in the mining sector.
Citing the year 2011 as an example, which saw a good year for the mining industry because of high metal prices, Villegas said metal exports reached P115. …