Mining matters Natural resource extraction and local business constraints

Table 5
Marginal effect of a one standard deviation increase in mining
1 st stage
Averag
e
constrai
Employ
ment
2 nd stage
Assets
Sales
[1] [2] [3] [4]
№ active mines 0-20 km x All sectors 0.6 -1.2% -3.7% -1.6%
x Traded 1.1 -2.1% -6.2% -2.6%
x Construction -0.6 1.2% 3.4% 1.4%
x Non-traded -2.1 4.2% 12.4% 5.2%
x Natural resources -0.4 0.7% 2.2% 0.9%
№ active mines 21-150 km x All sectors -3.5 6.9% 20.4% 8.6%
x Traded -3.8 7.7% 22.7% 9.6%
x Construction -4.6 9.3% 27.4% 11.6%
x Non-traded -1.8 3.7% 10.9% 4.6%
x Natural resources -5.0 10.1% 29.7% 12.6%
Notes: This table shows marginal effects of a one standard deviation increase in mining by sector.
Coefficients for column [1] are taken from Table 1 column 2 (‘all sectors’) and Table 2 column 1 (by
sector). Coefficients for columns [2-4] are taken from Table 4 columns 2-4, respectively. For columns 2-4
the significance level is the minimum of the direct and the indirect effect. For example, mines within 20
km have no significant effect on constraints reported by the construction sector. We therefore conclude that
employment, assets and sales of the construction sector are also not significantly affected by mining.
Mean 30.22 4.89 12.76 13.77