Mining Matters: Natural Resource Extraction and Local Business Constraints

Arbeitspapier

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 with the presence of active mines, the business environment in the immediate vicinity (<20 km) of a firm deteriorates but business constraints of more distant firms relax. The negative local impact of mining is concentrated among firms in tradeable 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 6198

Classification and Topics

• Classification: Wirtschaft ; Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices ; Firm Performance: Size, Diversification, and Scope ; Mining, Extraction, and Refining: Other Nonrenewable Resources ; Microeconomic Analyses of Economic Development ; Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products ; Nonrenewable Resources and Conservation: General
• Subject: mining ; natural resources ; business environment

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): de Haas, Ralph ; Poelhekke, Steven
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/149285
• Last update: 10.03.2025, 11:44 AM CET