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Mineral development and regional employment effects in northern Sweden: a scenario-based assessment
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.
2013 (English)In: Mineral Economics, ISSN 2191-2203, E-ISSN 2191-2211, Vol. 25, no 2-3, p. 55-63Article in journal (Refereed) Published
Abstract [en]

This paper reports the main results of an assessment of the local and regional economic benefits of a new large-scale iron ore project that is currently being developed by Northland Resources in northern Sweden. Specifically, the mine is located in Pajala—a municipality of approximately 6,300 residents in Norrbotten County in northern Sweden. We employ the Swedish regional impact model rAps to estimate the local and regional benefits of the project, focusing mainly on the employment opportunities created by multiplier effects. The rAps-system links an input–output model of regional production with a demographic model of net migration and commuting. This allows us to use a scenario-based approach and simulate the impact of different demographic assumptions, which are key determinants of the magnitude of local benefits. The local labour supply is limited and if most of the workers are non-residents who commute, much of the household incomes generated by the project flow out of Pajala and benefit other municipalities in the region. Our results indicate that the local employment multiplier for Pajala varies between 1.4 to 1.6 depending on the demographic assumptions, but the effect on local incomes is limited if labour demand is serviced mainly by commuters from other municipalities. The estimated regional employment multiplier for Norrbotten County is approximately 1.7, reflecting that the bigger and more diverse regional economy is better equipped to supply inputs to mineral development projects.

Place, publisher, year, edition, pages
2013. Vol. 25, no 2-3, p. 55-63
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:ltu:diva-3039DOI: 10.1007/s13563-012-0023-zLocal ID: 0cab5886-3f68-4668-acc8-91b881e7ff34OAI: oai:DiVA.org:ltu-3039DiVA, id: diva2:975894
Note
Validerad; 2013; 20130830 (thoejd)Available from: 2016-09-29 Created: 2016-09-29 Last updated: 2017-11-24Bibliographically approved

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Ejdemo, Thomas

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CiteExportLink to record
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  • apa
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