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Mining Matters: Natural Resource Extraction

Ralph De Haas () and Steven Peolhekke
Authors registered in the RePEc Author Service: Steven Poelhekke

No 175, OxCarre Working Papers from Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford

Abstract: We estimate the impact of local mining activity on the business constraints experienced by 22,150 firms across eight resource-rich countries. We find that the presence of active mines deteriorates the business environment in the immediate vicinity (<20 km) of a firm but relaxes business constraints of more distant firms. The negative local impact of mining is concentrated among firms in tradable sectors whose access to inputs and infrastructure becomes more constrained. This deterioration of the local business environment adversely affects firm growth and is in line with a natural resource curse at the sub-national level.

Keywords: Mining; natural resources; business environment (search for similar items in EconPapers)
JEL-codes: L16 L25 L72 O12 O13 Q30 (search for similar items in EconPapers)
Date: 2016-05-30
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