Mining Matters: Natural Resource Extraction and Firm-level Constraints

Ralph de Haas, S. Poelhekke

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

We estimate the impact of local mining activity on the business constraints experienced by 25,777 firms across nine large and resource-rich countries. We find that the presence of active mines in firms' immediate vicinity (<20 km) deteriorates the business environment in tradeable sectors. Access to inputs and infrastructure becomes more constrained for these firms and this adversely affects their growth. In contrast, nearby active mines have a positive effect on firms in non-tradeable sectors. Moreover, we show that the presence of mines at a greater distance (21–150 km) relaxes business constraints of all firms, in line with positive regional spending effects.

Original languageEnglish
Pages (from-to)109-124
Number of pages16
JournalJournal of International Economics
Volume117
DOIs
Publication statusPublished - Mar 2019

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