IDEAS home Printed from https://ideas.repec.org/p/inf/wpaper/2023.17.html
   My bibliography  Save this paper

Sustainable development and the extractive industry. An assessment of the Mexican case

Author

Listed:
  • Sabine Bacouël-Jentjens

    (ISC Paris Business School)

  • Grégory Levieuge

    (Banque de France)

  • José Riascos

    (University of Orléans)

  • Camelia Turcu

    (University of Orléans)

Abstract

This paper investigates the impact of mining on sustainable development in Mexico. Specifically, it examines whether mining affects different dimensions of sustainable development, including consumption patterns, inequalities, education, and environmental quality. Using household data on 2,403 municipalities over a period of 30 years considering four waves of census data (1990, 2000, 2010, 2020), we find that the mining sector has mixed effects on sustainable development. It has a limited positive effect on the income of neighboring households but it also generates negative environmental spillovers. We do not find significant effects on inequalities or education. Overall, our study provides a more nuanced understanding of the impact of mining on various aspects of sustainable development, contributing to ongoing debates on the relationship between natural resource extraction and sustainable development in emerging economies.

Suggested Citation

  • Sabine Bacouël-Jentjens & Grégory Levieuge & José Riascos & Camelia Turcu, 2023. "Sustainable development and the extractive industry. An assessment of the Mexican case," Working Papers 2023.17, International Network for Economic Research - INFER.
    • Handle: RePEc:inf:wpaper:2023.17
    as

    Download full text from publisher

    File URL: https://infer-research.eu/wp-content/uploads/2024/04/WP2023.17.pdf
    File Function: First version, 2023
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Institutions and the Resource Curse," Economic Journal, Royal Economic Society, vol. 116(508), pages 1-20, January.
    2. Tiago Cavalcanti & Daniel Mata & Frederik Toscani, 2019. "Winning the oil lottery: the impact of natural resource extraction on growth," Journal of Economic Growth, Springer, vol. 24(1), pages 79-115, March.
    3. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Cursed by Resources or Institutions?," The World Economy, Wiley Blackwell, vol. 29(8), pages 1117-1131, August.
    4. Xavier Sala-i-Martin & Arvind Subramanian, 2013. "Addressing the Natural Resource Curse: An Illustration from Nigeria," Journal of African Economies, Centre for the Study of African Economies, vol. 22(4), pages 570-615, August.
    5. Anja Benshaul-Tolonen, 2019. "Local Industrial Shocks and Infant Mortality," The Economic Journal, Royal Economic Society, vol. 129(620), pages 1561-1592.
    6. Bazillier, Remi & Girard, Victoire, 2020. "The gold digger and the machine. Evidence on the distributive effect of the artisanal and industrial gold rushes in Burkina Faso," Journal of Development Economics, Elsevier, vol. 143(C).
    7. Cl'ement de Chaisemartin & Xavier D'Haultf{oe}uille, 2020. "Difference-in-Differences Estimators of Intertemporal Treatment Effects," Papers 2007.04267, arXiv.org, revised Dec 2024.
    8. Gylfason, Thorvaldur, 2001. "Natural resources, education, and economic development," European Economic Review, Elsevier, vol. 45(4-6), pages 847-859, May.
    9. Mamo, Nemera & Bhattacharyya, Sambit & Moradi, Alexander, 2019. "Intensive and extensive margins of mining and development: Evidence from Sub-Saharan Africa," Journal of Development Economics, Elsevier, vol. 139(C), pages 28-49.
    10. Francesco Caselli & Guy Michaels, 2013. "Do Oil Windfalls Improve Living Standards? Evidence from Brazil," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 208-238, January.
    11. Axbard, Sebastian & Benshaul-Tolonen, Anja & Poulsen, Jonas, 2021. "Natural resource wealth and crime: The role of international price shocks and public policy," Journal of Environmental Economics and Management, Elsevier, vol. 110(C).
    12. Callaway, Brantly & Sant’Anna, Pedro H.C., 2021. "Difference-in-Differences with multiple time periods," Journal of Econometrics, Elsevier, vol. 225(2), pages 200-230.
    13. Darcy Tetreault, 2022. "Two sides of the same coin: increasing material extraction rates and social environmental conflicts in Mexico," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(12), pages 14163-14183, December.
    14. Anca M. Cotet & Kevin K. Tsui, 2013. "Oil and Conflict: What Does the Cross Country Evidence Really Show?," American Economic Journal: Macroeconomics, American Economic Association, vol. 5(1), pages 49-80, January.
    15. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    16. Smith, Brock, 2015. "The resource curse exorcised: Evidence from a panel of countries," Journal of Development Economics, Elsevier, vol. 116(C), pages 57-73.
    17. Tomás Rau & Sergio Urzúa & Loreto Reyes, 2015. "Early Exposure to Hazardous Waste and Academic Achievement: Evidence from a Case of Environmental Negligence," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(4), pages 527-563.
    18. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
    Full references (including those not matched with items on IDEAS)

    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. Konte, Maty & Vincent, Rose Camille, 2021. "Mining and quality of public services: The role of local governance and decentralization," World Development, Elsevier, vol. 140(C).
    2. Bonilla Mejía, Leonardo, 2020. "Mining and human capital accumulation: Evidence from the Colombian gold rush," Journal of Development Economics, Elsevier, vol. 145(C).
    3. Nouf Nasser Alsharif, 2017. "Three essays on growth and economic diversification in resource-rich countries," Economics PhD Theses 0317, Department of Economics, University of Sussex Business School.
    4. Zuo, Na & Zhong, Hua, 2020. "Can resource policy reverse the resource curse? Evidence from China," Resources Policy, Elsevier, vol. 68(C).
    5. Elena Esposito & Scott F. Abramson, 2021. "The European coal curse," Journal of Economic Growth, Springer, vol. 26(1), pages 77-112, March.
    6. Nemera Gebeyehu Mamo, 2018. "Essays on natural resources in Africa: local economic development, multi-ethnic coalitions and armed conflict," Economics PhD Theses 0518, Department of Economics, University of Sussex Business School.
    7. Sambit Bhattacharyya & Michael Keller, 2021. "Resource Discovery and the Political Fortunes of National Leaders," Economica, London School of Economics and Political Science, vol. 88(349), pages 129-166, January.
    8. Lee, Chien-Chiang & He, Zhi-Wen, 2022. "Natural resources and green economic growth: An analysis based on heterogeneous growth paths," Resources Policy, Elsevier, vol. 79(C).
    9. Waqar Wadho & Sadia Hussain, 2023. "Ethnic diversity, concentration of political power and the curse of natural resources," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(1), pages 113-137, April.
    10. Smith, Brock, 2015. "The resource curse exorcised: Evidence from a panel of countries," Journal of Development Economics, Elsevier, vol. 116(C), pages 57-73.
    11. Phoebe W. Ishak & Pierre-Guillaume Méon, 2020. "A resource-rich neighbor is a misfortune: The spatial distribution of the resource curse in Brazil," Working Papers CEB 20-001, ULB -- Universite Libre de Bruxelles.
    12. Masi, Tania & Savoia, Antonio & Sen, Kunal, 2024. "Is there a fiscal resource curse? Resource rents, fiscal capacity and political institutions in developing economies," World Development, Elsevier, vol. 177(C).
    13. Katovich, Erik S., 2024. "Winning and losing the resource lottery: Governance after uncertain oil discoveries," Journal of Development Economics, Elsevier, vol. 166(C).
    14. Alssadek, Marwan & Benhin, James, 2023. "Natural resource curse: A literature survey and comparative assessment of regional groupings of oil-rich countries," Resources Policy, Elsevier, vol. 84(C).
    15. Havranek, Tomas & Horvath, Roman & Zeynalov, Ayaz, 2016. "Natural Resources and Economic Growth: A Meta-Analysis," World Development, Elsevier, vol. 88(C), pages 134-151.
    16. Leonardo Bonilla-Mejía, 2019. "Illegal Mining and Human Capital Accumulation: Evidence from the Colombian Gold Rush," Documentos de trabajo sobre Economía Regional y Urbana 280, Banco de la Republica de Colombia.
    17. Hilmawan, Rian & Clark, Jeremy, 2021. "Resource dependence and the causes of local economic growth: An empirical investigation," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(03), January.
    18. Christopher A. Hartwell & Roman Horvath & Eva Horvathova & Olga Popova, 2019. "Democratic Institutions, Natural Resources, and Income Inequality," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 61(4), pages 531-550, December.
    19. Antonakakis, Nikolaos & Cunado, Juncal & Filis, George & Gracia, Fernando Perez de, 2017. "Oil dependence, quality of political institutions and economic growth: A panel VAR approach," Resources Policy, Elsevier, vol. 53(C), pages 147-163.
    20. Neerbewendé Abdoul Rachid Pafadnam, 2024. "How does implementing the Extractive Industries Transparency Initiative (EITI) affect economic growth? Evidence from developing countries," Post-Print hal-04727043, HAL.

    More about this item

    Keywords

    Sustainable development; environment; extractive industry; Mexico;
    All these keywords.

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

    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:inf:wpaper:2023.17. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Pedro Cerqueira (email available below). General contact details of provider: https://edirc.repec.org/data/inferea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.