Intensive and extensive margins of mining and development: evidence from Sub-Saharan Africa

Mamo, Nemera Gebeyehu, Bhattacharyya, Sambit and Moradi, Alexander (2019) Intensive and extensive margins of mining and development: evidence from Sub-Saharan Africa. Journal of Development Economics, 139. pp. 28-49. ISSN 0304-3878

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What are the economic consequences of mining in Sub-Saharan Africa? Using a panel of 3,635 districts from 42 Sub-Saharan African countries for the period 1992 to 2012 we investigate the effects of mining on living standards (measured by night-lights and household/cohort characteristics from Demographic and Health Surveys) and public service provisions (from Afrobarometer). Night-lights increase in mining districts when mineral production expands (intensive margin), but large effects are mainly associated with new discoveries and new production (extensive margin). We identify the effect by carefully choosing feasible but not yet mined districts as a control group. In addition, we exploit first, single-first, giant and major discoveries as exogenous news shocks. Mines in Africa exhibit enclave characteristics as we find little evidence of significant spillovers to other districts.

Item Type: Article
Keywords: Mineral discovery; Mineral production; Night-time lights
Schools and Departments: School of Business, Management and Economics > Economics
Subjects: H Social Sciences > HC Economic history and conditions
Depositing User: Sambit Bhattacharyya
Date Deposited: 11 Feb 2019 14:20
Last Modified: 20 Feb 2019 14:12

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