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

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posted on 2023-06-09, 16:49 authored by Nemera Gebeyehu Mamo, Sambit BhattacharyyaSambit Bhattacharyya, Alexander Moradi
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.

History

Publication status

  • Published

File Version

  • Accepted version

Journal

Journal of Development Economics

ISSN

0304-3878

Publisher

Elsevier

Volume

139

Page range

28-49

Department affiliated with

  • Economics Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2019-02-11

First Open Access (FOA) Date

2021-02-13

First Compliant Deposit (FCD) Date

2019-02-09

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