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Good mine, bad mine: natural resource heterogeneity and Dutch disease in Indonesia

Abstract:

We analyse the local effect of exogenous shocks to the value of mineral deposits at the district level in Indonesia using a panel of manufacturing plants. To the best of our knowledge, we are the first to model and estimate the effect of heterogeneity in natural resource extraction methods. We find that in areas where mineral extraction is relatively capital-intensive, mining booms cause virtually no upward pressure on manufacturing earnings per worker, and both producers of traded and local ...

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Publication status:
Published

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Publisher:
University of Oxford
Series:
OxCarre Papers
Publication date:
2018-09-17
Paper number:
214
Keywords:
Pubs id:
1143522
Local pid:
pubs:1143522
Deposit date:
2020-12-14

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