Mining and Supplier Development: The Case of Proinnóvate in Cajamarca MiningIndustry

Abstract

The research shows the positive impact of the National Supplier Development Program, PDP, of the Peruvian Ministry of Production’s ProInnóvate on the business productivity of local mining suppliers in Cajamarca, Peru. The hypothesis was evaluated using a model of contemporary elasticities for a Cobb-Douglas production function, estimated with ordinary least squares, and a dynamic model of elasticities for business productivity, estimated by the generalized method of moments, in both cases for unbalanced panel data. For the case of both models, the beginning of the program represented a breaking point where the participation of mining suppliers generated increases in productivity between 22,1 % and 65,6 % considering the period from 2013 to 2021, controlled by other factors.

Keywords

• business development
• productivity
• proinnóvate
• supplier development
• public policy assessment