EconPapers    
Economics at your fingertips  
 

Impacts of mineral resources: Evidence from county economies in China

Xiaoping He and Dunguo Mou

Energy Policy, 2020, vol. 136, issue C

Abstract: the literature proposes that a booming minerals sector leads to a development curse. The mineral markets in China experienced a prolonged boom over the period of 2000–2010. We empirically examine the effects of mineral resources on employment in county economies during the boom. We consider the endogeneity of the resource measure and employ an instrumental variables approach to resolve the problem. We find the mining boom exerts a significant “crowding out” effect on the manufacturing employment in mineral-resource-dependent counties, but benefits the employment in services. Because the increase in mining employment is sizeable in a mining boom, the overall employment in the resource-dependent counties has shown a small growth. These results are robust to alternative samples. Our findings confirm the argument that resource booms undermine manufacturing sectors through deindustrialization effects, though little evidence shows the existence of a resource curse in overall employment. We conclude that for a developing economy with rich mineral resources and a large population, it would be hard to following the road of industrialization relying on manufacturing.

Keywords: Resource dependence; Local economy; Employment; Instrumental variable (search for similar items in EconPapers)
JEL-codes: C26 E24 R10 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421519306755
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:136:y:2020:i:c:s0301421519306755

DOI: 10.1016/j.enpol.2019.111088

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2021-10-16
Handle: RePEc:eee:enepol:v:136:y:2020:i:c:s0301421519306755