Abstract

Punta Arenas is a county in the Chilean extreme south which economy is driven by the production of two commodities: oil and methanol. In this context, the main aim of this paper is to estimate the impact of these commodities on output, income and employment of the county, where the relative significance of the commodities production has been changing from oil to methanol. Using an input-output framework, we show that, the linkages and the impact of these commodities in this small and isolated economy in output and income. While in employment their linkages are large, the level of the employment on this industry is very low compare with the Punta Arenas total employees.