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Mine over matter? Health, wealth and forests in a mining area of Orissa

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Purpose – The purpose of this paper is to investigate whether mining can serve as a pathway for
economic development despite the environmental externalities. The extensive literature on the
‘‘resource curse’’ phenomenon at the national level generally finds that economic dependence on
mineral resources is associated with lower levels of economic growth. This paper shows that further
insight can be obtained by studying micro-level resource curse because of heterogeneity in
institutions, natural resources and economic behaviors.
Design/methodology/approach – The paper empirically tests the resource curse hypothesis with
data from a stratified random sample of 600 households in 20 villages in the mining district of
Keonjhar, Orissa. Household surveys were used to collect data on demography, forest dependence,
health and household economics. Using geographical information system (GIS), the household data
were integrated with secondary spatial data on land cover and location of mines to construct multiple
measures of exposure to iron ore mines.
Findings – Microeconometric models demonstrate the multi-faceted nature of the relationships
between mine exposure, forest resources and human welfare. Households closer to mines experience
higher incidences of many illnesses, rank lower on indicators of human development and own fewer
production assets. They also derive fewer forest benefits because forests are more degraded and less
accessible in villages closer to mines.
Originality/value – This analysis remains timely because of on-going violent conflicts and concern
over negative impacts on the welfare of rural populations in the mining areas of India, which is
consistent with the notion of a resource curse. The paper’s findings on the magnitude of negative
impacts can inform the policy discourse (e.g. benefits sharing schemes) related to mining-led growth.

Keywords Mining industry, Forests, Natural resources, Econometrics, Social welfare economics,India

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Informasi Detail

Judul Seri

Indian Growth and Development Review

No. Panggil

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Penerbit

: Emerald Group., 2010

Deskripsi Fisik

Indian Growth and Development Review Vol. 3 No. 2, 2010 pp. 166-185

Bahasa

English

ISBN/ISSN

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Klasifikasi

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Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

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Subjek

EKONOMI

Info Detail Spesifik

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Pernyataan Tanggungjawab

Asmawati/Syahrial

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