IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp9883.html
   My bibliography  Save this paper

Mining in Arctic and Non-Arctic Regions: A Socioeconomic Assessment

Author

Listed:
  • Frederiksen, Anders

    () (Aarhus University)

  • Kadenic, Maja Due

    () (Aarhus University)

Abstract

In this paper, we study how mines change local societies in the Nordic countries with a particular focus on the Arctic region. Our study is based on register data at the municipality level from Norway, Sweden, and Finland for the period 1986 to 2013. The applied econometric model allows for identification of the total socioeconomic effects that occur throughout the mine's life cycle. We find positive effects on local employment and reductions in unemployment and the number of people outside the labor force when a mine is opening up. We also detect significant shifts in the industry structure in the period around a mine opening and we find that mines attract young people and reduce crime rates. We do not find any effects on the local population size, the gender or education compositions, or fertility rates.

Suggested Citation

  • Frederiksen, Anders & Kadenic, Maja Due, 2016. "Mining in Arctic and Non-Arctic Regions: A Socioeconomic Assessment," IZA Discussion Papers 9883, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9883
    as

    Download full text from publisher

    File URL: http://ftp.iza.org/dp9883.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Clements, Kenneth W. & Ahammad, Helal & Qiang, Ye, 1996. "New mining and mineral-processing projects in Western Australia: Effects of employment and the macro-economy," Resources Policy, Elsevier, vol. 22(4), pages 293-346, December.
    2. Jacobson, Louis S & LaLonde, Robert J & Sullivan, Daniel G, 1993. "Earnings Losses of Displaced Workers," American Economic Review, American Economic Association, vol. 83(4), pages 685-709, September.
    3. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1993. "Long-term earnings losses of high-seniority displaced workers," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 17(Nov), pages 2-20.
    4. Carrington, William J, 1996. "The Alaskan Labor Market during the Pipeline Era," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 186-218, February.
    5. Sachs, Jeffrey D. & Warner, Andrew M., 1999. "The big push, natural resource booms and growth," Journal of Development Economics, Elsevier, vol. 59(1), pages 43-76, June.
    6. Gylfason, Thorvaldur, 2001. "Natural resources, education, and economic development," European Economic Review, Elsevier, vol. 45(4-6), pages 847-859, May.
    7. Prno, Jason, 2013. "An analysis of factors leading to the establishment of a social licence to operate in the mining industry," Resources Policy, Elsevier, vol. 38(4), pages 577-590.
    8. Davis, Graham A., 1995. "Learning to love the Dutch disease: Evidence from the mineral economies," World Development, Elsevier, vol. 23(10), pages 1765-1779, October.
    9. Jordi Domenech, 2008. "Mineral resource abundance and regional growth in Spain, 1860-2000," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(8), pages 1122-1135.
    10. Aroca, Patricio, 2001. "Impacts and development in local economies based on mining: : the case of the Chilean II region," Resources Policy, Elsevier, vol. 27(2), pages 119-134, June.
    11. Harsem, Øistein & Eide, Arne & Heen, Knut, 2011. "Factors influencing future oil and gas prospects in the Arctic," Energy Policy, Elsevier, vol. 39(12), pages 8037-8045.
    12. Ivanova, Galina, 2014. "The mining industry in Queensland, Australia: Some regional development issues," Resources Policy, Elsevier, vol. 39(C), pages 101-114.
    13. Scott Loveridge, 2004. "A Typology and Assessment of Multi-sector Regional Economic Impact Models," Regional Studies, Taylor & Francis Journals, vol. 38(3), pages 305-317.
    14. Hajkowicz, Stefan A. & Heyenga, Sonja & Moffat, Kieren, 2011. "The relationship between mining and socio-economic well being in Australia's regions," Resources Policy, Elsevier, vol. 36(1), pages 30-38, March.
    15. John Rolfe & Daniel Gregg & Galina Ivanova & Reuben Lawrence & David Rynne, 2011. "The Economic Contribution of the Resources Sector by Regional Areas in Queensland," Economic Analysis and Policy, Elsevier, vol. 41(1), pages 15-36, March.
    16. Gary McMahon & Felix Remy, 2001. "Large Mines and the Community : Socioeconomic and Environmental Effects in Latin America, Canada and Spain," World Bank Publications, The World Bank, number 15247, November.
    17. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
    18. Davis, Graham A, 1998. "The minerals sector, sectoral analysis, and economic development," Resources Policy, Elsevier, vol. 24(4), pages 217-228, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maja Due Kadenic, 2017. "Transitioning from an economic cluster to a collaborative community: mining projects in Greenland," Journal of Organization Design, Springer;Organizational Design Community, vol. 6(1), pages 1-21, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Barbier,Edward B., 2007. "Natural Resources and Economic Development," Cambridge Books, Cambridge University Press, number 9780521706513.
    2. Tcheta-Bampa, Tcheta-Bampa & Kodila-Tedika, Oasis, 2018. "Dynamisation de la malédiction des ressources naturelles en Afrique sur les performances économiques : institution et guerre froide [Curse of Natural Resources and Economic Performance in Africa: I," MPRA Paper 86510, University Library of Munich, Germany.
    3. Boyce, John R. & Herbert Emery, J.C., 2011. "Is a negative correlation between resource abundance and growth sufficient evidence that there is a "resource curse"?," Resources Policy, Elsevier, vol. 36(1), pages 1-13, March.
    4. Wu, Sanmang & Lei, Yalin, 2016. "Study on the mechanism of energy abundance and its effect on sustainable growth in regional economies: A case study in China," Resources Policy, Elsevier, vol. 47(C), pages 1-8.
    5. Fan, Rui & Fang, Ying & Park, Sung Y., 2012. "Resource abundance and economic growth in China," China Economic Review, Elsevier, vol. 23(3), pages 704-719.
    6. Brunnschweiler, Christa N. & Bulte, Erwin H., 2008. "The resource curse revisited and revised: A tale of paradoxes and red herrings," Journal of Environmental Economics and Management, Elsevier, vol. 55(3), pages 248-264, May.
    7. Galina Williams & Ruth Nikijuluw, 2020. "The economic and social benefit of coal mining: the case study of regional Queensland," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1113-1132, October.
    8. Graham A. Davis & John E. Tilton, 2005. "The resource curse," Natural Resources Forum, Blackwell Publishing, vol. 29(3), pages 233-242, August.
    9. Nuno Torres & Óscar Afonso & Isabel Soares, 2013. "A survey of literature on the resource curse: critical analysis of the main explanations, empirical tests and resource proxies," CEF.UP Working Papers 1302, Universidade do Porto, Faculdade de Economia do Porto.
    10. Alexandr Cerny & Randall K. Filer, 2007. "Natural Resources: Are They Really a Curse?," CERGE-EI Working Papers wp321, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    11. Kolstad, Ivar & Søreide, Tina, 2009. "Corruption in natural resource management: Implications for policy makers," Resources Policy, Elsevier, vol. 34(4), pages 214-226, December.
    12. Söderholm, Patrik & Svahn, Nanna, 2015. "Mining, regional development and benefit-sharing in developed countries," Resources Policy, Elsevier, vol. 45(C), pages 78-91.
    13. Grant Mark Nülle & Graham A. Davis, 2018. "Neither Dutch nor disease?—natural resource booms in theory and empirics," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 31(1), pages 35-59, May.
    14. Bulte, Erwin H. & Damania, Richard & Deacon, Robert T., 2005. "Resource intensity, institutions, and development," World Development, Elsevier, vol. 33(7), pages 1029-1044, July.
    15. Guy Michaels, 2011. "The Long Term Consequences of Resource‐Based Specialisation," Economic Journal, Royal Economic Society, vol. 121(551), pages 31-57, March.
    16. Blanco, Luisa & Grier, Robin, 2012. "Natural resource dependence and the accumulation of physical and human capital in Latin America," Resources Policy, Elsevier, vol. 37(3), pages 281-295.
    17. Badeeb, Ramez Abubakr & Lean, Hooi Hooi & Clark, Jeremy, 2017. "The evolution of the natural resource curse thesis: A critical literature survey," Resources Policy, Elsevier, vol. 51(C), pages 123-134.
    18. Satti, Saqlain Latif & Farooq, Abdul & Loganathan, Nanthakumar & Shahbaz, Muhammad, 2014. "Empirical evidence on the resource curse hypothesis in oil abundant economy," Economic Modelling, Elsevier, vol. 42(C), pages 421-429.
    19. Costantini, Valeria & Monni, Salvatore, 2008. "Environment, human development and economic growth," Ecological Economics, Elsevier, vol. 64(4), pages 867-880, February.
    20. Hodler, Roland, 2006. "The curse of natural resources in fractionalized countries," European Economic Review, Elsevier, vol. 50(6), pages 1367-1386, August.

    More about this item

    Keywords

    resource development; socioeconomic effects; Arctic; mining; Nordic countries;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp9883. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Holger Hinte). General contact details of provider: http://www.iza.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.