Explaining the Heterogeneous Effects of Natural Resources on Local Economic Development

39 Pages Posted: 13 Jun 2016 Last revised: 16 Oct 2018

See all articles by Sandra Rozo

Sandra Rozo

University of Southern California - Marshall School of Business; University of Southern California - Schaeffer Center for Health Policy and Economics

Date Written: June 9, 2016

Abstract

This article investigates whether natural resource booms can have heterogeneous effects on local development, depending on the type of resource studied. I employ satellite light data for Colombia and exploit the effects of international price shocks in municipalities with preexisting reserves of gold, coal, and oil. I find that gold and oil producing municipalities see higher light and migration following a price increase relative to the other municipalities. These areas also see a deterioration in socioeconomic outcomes and firm performance in the non-mining sector. The opposite effects are observed for the case of coal.

Keywords: Natural resources, local economic development, crime

JEL Classification: O13, O43, Q34, R11

Suggested Citation

Rozo, Sandra, Explaining the Heterogeneous Effects of Natural Resources on Local Economic Development (June 9, 2016). Available at SSRN: https://ssrn.com/abstract=2793663 or http://dx.doi.org/10.2139/ssrn.2793663

Sandra Rozo (Contact Author)

University of Southern California - Marshall School of Business ( email )

701 Exposition Blvd
Los Angeles, CA 90089
United States

HOME PAGE: http://www.sandravrozo.com

University of Southern California - Schaeffer Center for Health Policy and Economics ( email )

635 Downey Way
Los Angeles, CA 90089-3333
United States

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