Large-scale mining and local development: Evidence from Mongolia

Odmaa Narantungalag
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Odmaa Narantungalag: School of Economics and Finance, Massey University, Palmerston North

No 2101, Discussion Papers from School of Economics and Finance, Massey University, New Zealand

Abstract: We investigate the local economic impacts of a large-scale copper-gold mine in Mongolia. Employing household data from 2008 to 2016, we find positive economic effects of the mine and its corporate social responsibility (CSR) activities. A ten percent increase in mining activities resulted in 2.2 and 2.3 percent increases in income and food consumption, respectively. Mining activities enabled households to increase their medical expenditures, while sickness did not increase significantly. In contrast, education expenditures reduced while educational attainments improved in mining areas. Both expenditure patterns indicate that large-scale extractive industries can generate positive welfare outcomes for residents, and CSR activities further enhance the mining sector’s traditional benefits.

Keywords: Mining; Natural Resources; Regional Economy; and Economic Development (search for similar items in EconPapers)
JEL-codes: L72 O12 O13 Q32 R11 (search for similar items in EconPapers)
Pages: 60 pages
Date: 2021
New Economics Papers: this item is included in nep-dev, nep-geo and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:mas:dpaper:2101

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