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Unintended effects of illegal economic activities: Illegal gold mining and malaria

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  • Rozo, Sandra V.

Abstract

Illegal economic activities are not only associated with higher levels of violent crime, they may also increase unforeseen risks and cause other negative unintended consequences for populations. This paper investigates the causal effects of illegal gold mining on malaria incidence. For this purpose, I employ unique Colombian satellite data with the location of illegal gold mines matched to municipal governmental health reports on the number of malaria cases. To identify causal effects, I use preexisting geochemical gold anomalies as an instrumental variable for illegal gold production. I find positive and large effects of illegal gold mining on malaria incidence. My estimates suggest that when an area containing illegal gold mines increases by 1 hectare, the annual parasite index for malaria increases by 1.04 cases per 100,000 inhabitants.

Suggested Citation

  • Rozo, Sandra V., 2020. "Unintended effects of illegal economic activities: Illegal gold mining and malaria," World Development, Elsevier, vol. 136(C).
    • Handle: RePEc:eee:wdevel:v:136:y:2020:i:c:s0305750x20302461
    DOI: 10.1016/j.worlddev.2020.105119
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    Cited by:

    1. Pagel, Jeff, 2022. "A natural resource curse: the unintended effects of gold mining on malaria," LSE Research Online Documents on Economics 115532, London School of Economics and Political Science, LSE Library.
    2. Dongqin Wang, 2022. "How does religion affect health in the gold mining industry? Evidence from Nigeria," Review of Development Economics, Wiley Blackwell, vol. 26(4), pages 2218-2250, November.
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    More about this item

    Keywords

    Resource curse; Illegal economic activities; Malaria;
    All these keywords.

    JEL classification:

    • I00 - Health, Education, and Welfare - - General - - - General
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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