Ecuador - Mineral rents (% of GDP)

Mineral rents (% of GDP) in Ecuador was 0.000 as of 2019. Its highest value over the past 49 years was 0.256 in 1991, while its lowest value was 0.000 in 2019.

Definition: Mineral rents are the difference between the value of production for a stock of minerals at world prices and their total costs of production. Minerals included in the calculation are tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate.

Source: Estimates based on sources and methods described in "The Changing Wealth of Nations: Measuring Sustainable Development in the New Millennium" (World Bank, 2011).

See also:

Year Value
1970 0.007
1971 0.006
1972 0.006
1973 0.009
1974 0.004
1975 0.001
1976 0.002
1977 0.003
1978 0.002
1979 0.007
1980 0.012
1981 0.003
1982 0.001
1983 0.001
1984 0.150
1985 0.089
1986 0.126
1987 0.241
1988 0.167
1989 0.048
1990 0.031
1991 0.256
1992 0.024
1993 0.016
1994 0.030
1995 0.175
1996 0.134
1997 0.030
1998 0.013
1999 0.016
2000 0.031
2001 0.010
2002 0.059
2003 0.105
2004 0.086
2005 0.090
2006 0.120
2007 0.072
2008 0.022
2009 0.141
2010 0.145
2011 0.193
2012 0.183
2013 0.164
2014 0.089
2015 0.064
2016 0.083
2017 0.085
2018 0.073
2019 0.000

Development Relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future.

Limitations and Exceptions: This definition of economic rent differs from that used in the System of National Accounts, where rents are a form of property income, consisting of payments to landowners by a tenant for the use of the land or payments to the owners of subsoil assets by institutional units permitting them to extract subsoil deposits.

Statistical Concept and Methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the world price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs (including a normal return on capital). These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Environment Indicators

Sub-Topic: Natural resources contribution to GDP