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Mining and Community Economic Growth

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  • Deller, Stephen

    (University of Wisconsin-Madison)

  • Schreiber, Andrew

    (University of Wisconsin-Madison)

Abstract

The rapid expansion of oil and gas extraction in large parts of the Marcellus fields in the Appalachian Basin and the Bakken fields in the Williston Basin of the Dakotas and Montana has reignited debate over the role of natural resource extraction as a rural economic growth strategy. While the popular media has focused on hydraulic fracturing and natural gas and oil production, there has been significant interest in silicon sand mining in western Wisconsin and southeastern Minnesota. This “frack sand” is used in oil and gas hydraulic fracturing activity. In this study we explore the relationship between non-oil and gas mining (NAICS 212) activities and economic growth for nonmetropolitan U.S. counties for the period 2000 to 2007. We find robust results suggesting that non-oil and gas mining is associated with lower population growth, and a positive impact on per capita income, but has no impact on employment growth.

Suggested Citation

  • Deller, Stephen & Schreiber, Andrew, 2012. "Mining and Community Economic Growth," The Review of Regional Studies, Southern Regional Science Association, vol. 42(2), pages 121-141, Summer.
    • Handle: RePEc:rre:publsh:v:42:y:2012:i:2:p:121-141
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    References listed on IDEAS

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    Cited by:

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    2. Chris Cunningham & Kristopher Gerardi & Yannan Shen, 2017. "Fracking and Mortgage Default," FRB Atlanta Working Paper 2017-4, Federal Reserve Bank of Atlanta.
    3. Naomi Pandiangan & Sukono Sukono & Endang Soeryana Hasbullah, 2021. "Quadratic Investment Portfolio Based on Value-at-risk with Risk-Free Assets: For Stocks of the Mining and Energy Sector," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 175-184.
    4. Brian E. Whitacre & Dylan L. Johnston & David W. Shideler & Notie H. Lansford, 2020. "The influence of oil and natural gas employment on local retail spending: evidence from Oklahoma panel data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(1), pages 133-157, February.
    5. James Feyrer & Erin T. Mansur & Bruce Sacerdote, 2017. "Geographic Dispersion of Economic Shocks: Evidence from the Fracking Revolution," American Economic Review, American Economic Association, vol. 107(4), pages 1313-1334, April.
    6. Hua Wang & Shi Wang & Cheng-Fu Yang & Sheng-Nan Jiang & Yun-Juan Li, 2019. "Resource Price Fluctuations, Resource Dependence and Sustainable Growth," Sustainability, MDPI, vol. 11(22), pages 1-13, November.
    7. Dianne Rahm & Jayce L. Farmer & Billy Fields, 2016. "The Eagle Ford Shale Development and Local Government Fiscal Behavior," Public Budgeting & Finance, Wiley Blackwell, vol. 36(3), pages 45-68, September.
    8. Jean Dubé & Mario Polèse, 2015. "Resource Curse and Regional Development: Does Dutch Disease Apply to Local Economies? Evidence from Canada," Growth and Change, Wiley Blackwell, vol. 46(1), pages 38-57, March.
    9. Haggerty, Julia & Gude, Patricia H. & Delorey, Mark & Rasker, Ray, 2014. "Long-term effects of income specialization in oil and gas extraction: The U.S. West, 1980–2011," Energy Economics, Elsevier, vol. 45(C), pages 186-195.

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    More about this item

    Keywords

    rural development; mining; economic growth;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts

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