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Large-scale mining and local development: Evidence from Mongolia

Author

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  • Odmaa Narantungalag

    (School of Economics and Finance, Massey University, Palmerston North)

Abstract

We investigate the local economic impacts of a large-scale copper-gold mine in Mongolia. Employing household data from 2008 to 2016, we find positive economic effects of the mine and its corporate social responsibility (CSR) activities. A ten percent increase in mining activities resulted in 2.2 and 2.3 percent increases in income and food consumption, respectively. Mining activities enabled households to increase their medical expenditures, while sickness did not increase significantly. In contrast, education expenditures reduced while educational attainments improved in mining areas. Both expenditure patterns indicate that large-scale extractive industries can generate positive welfare outcomes for residents, and CSR activities further enhance the mining sector’s traditional benefits.

Suggested Citation

  • Odmaa Narantungalag, 2021. "Large-scale mining and local development: Evidence from Mongolia," Discussion Papers 2101, School of Economics and Finance, Massey University, New Zealand.
    • Handle: RePEc:mas:dpaper:2101
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    File URL: https://econfin.massey.ac.nz/school/publications/discuss/2021/DP2101.pdf
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    More about this item

    Keywords

    Mining; Natural Resources; Regional Economy; and Economic Development;
    All these keywords.

    JEL classification:

    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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