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Is there a Mineral-Induced ‘Economic Euphoria’?: Evidence from Latin America

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  • Paul Fenton Villar

    (University of East Anglia)

Abstract

A development imperative emphasising the economic benefits of mineral extraction has led researchers to speculate about whether minerals inflate citizens’ economic expectations and, due to an upward shift in aspirations, cause a degree of dissatisfaction. Using survey data from 18 Latin American countries, this study finds evidence of the ‘euphoric effect’ of minerals materialising among household expectations concerning future changes in the economic situation of their country. Similarly, it also finds a positive and significant relationship with expectations concerning future changes in respondents’ personal economic situation. However, it does not detect a significant relationship between minerals and citizens’ life satisfaction.

Suggested Citation

  • Paul Fenton Villar, 2022. "Is there a Mineral-Induced ‘Economic Euphoria’?: Evidence from Latin America," Journal of Happiness Studies, Springer, vol. 23(4), pages 1403-1430, April.
    • Handle: RePEc:spr:jhappi:v:23:y:2022:i:4:d:10.1007_s10902-021-00455-5
    DOI: 10.1007/s10902-021-00455-5
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    More about this item

    Keywords

    Extractive industries; Expectations; Satisfaction; Resource curse;
    All these keywords.

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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