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Mining Activity and the Setting up of New Businesses in Basilicata

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  • M. Percoco

Abstract

Natural resources have always been considered as a strategic element for thelocation of towns and the development of their economies. Recently, however,economic literature has highlighted that the effect the abundance of natural resourceshas on growth is even negative. The aim of this paper is to estimate theimpact of mining activities in Basilicata as a catalyst for new businesses. Througha methodology of Geographic Regression Discontinuity Design, the spatial variationof the number of companies in Lucania's municipalities has been analyzedand it has been estimated that the oil would increase the presence of about 0.01firms per inhabitant over the whole area where royalties have side effects. By usinga difference-in-discontinuities approach, the significance and the estimate ofthis result is maintained.

Suggested Citation

  • M. Percoco, 2012. "Mining Activity and the Setting up of New Businesses in Basilicata," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 4, pages 881-898.
    • Handle: RePEc:mul:jqyfkm:doi:10.1432/73422:y:2012:i:4:p:881-898
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    Cited by:

    1. Diemer, Andreas, 2020. "Spatial diffusion of local economic shocks in social networks: evidence from the US fracking boom," LSE Research Online Documents on Economics 105868, London School of Economics and Political Science, LSE Library.
    2. Matteo Alpino & Irene Di Marzio & Maurizio Lozzi & Vincenzo Mariani, 2022. "Labor market spillovers of a large plan opening. Evidence from the oil industry," Temi di discussione (Economic working papers) 1386, Bank of Italy, Economic Research and International Relations Area.

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