Does mining alleviate or exacerbate poverty: Are local community grievances really 'Much Ado about Nothing'?

dc.contributor.advisorMorris, Michaelen_ZA
dc.contributor.authorNxele, Musawenkosien_ZA
dc.date.accessioned2017-08-23T12:51:35Z
dc.date.available2017-08-23T12:51:35Z
dc.date.issued2017en_ZA
dc.description.abstractThis study sets out to evaluate the impact of industrial mining on local economies, within a context of a developing country with a strict procurement policy on its extractive industry. It contributes empirical evidence on two main ideas on the impact of mining on local communities. The one idea is that mining has a positive impact on local communities because it creates economic activity through economic linkages with local markets; and thus contributes to local industrialisation, economic development, and poverty reduction. The other idea is that mining harms local economies through negative impacts on the environment; which hurts local agriculture and health, leading to an increase in local poverty. By evaluating a case study of a poor rural economy driven by mining and agriculture, this study measures the net average impact of the opening and expansion of mining on local income poverty. Using ward level data combined with firm data, the study essentially uses a difference-in-differences estimation procedure, by exploiting a local input demand shock from large industrial mines, as well as changes in distance to a mine, as sources of variation. The study finds that the opening of a mine is associated with poverty reduction in surrounding communities, while the impact from an expansion of a mine depends on the type of commodity mined. Unpacking these results by commodity gives insight into the concentration of labour and community unrest in the platinum and gold mining sectors in South Africa. The findings of this study remain robust to different indicators of mine expansion, and checks for alternative explanations such as selective migration and sample checks. The study uses the Limpopo Province of South Africa as a suitable case study.en_ZA
dc.identifier.apacitationNxele, M. (2017). <i>Does mining alleviate or exacerbate poverty: Are local community grievances really 'Much Ado about Nothing'?</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/24930en_ZA
dc.identifier.chicagocitationNxele, Musawenkosi. <i>"Does mining alleviate or exacerbate poverty: Are local community grievances really 'Much Ado about Nothing'?."</i> Thesis., University of Cape Town ,Faculty of Commerce ,School of Economics, 2017. http://hdl.handle.net/11427/24930en_ZA
dc.identifier.citationNxele, M. 2017. Does mining alleviate or exacerbate poverty: Are local community grievances really 'Much Ado about Nothing'?. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Nxele, Musawenkosi AB - This study sets out to evaluate the impact of industrial mining on local economies, within a context of a developing country with a strict procurement policy on its extractive industry. It contributes empirical evidence on two main ideas on the impact of mining on local communities. The one idea is that mining has a positive impact on local communities because it creates economic activity through economic linkages with local markets; and thus contributes to local industrialisation, economic development, and poverty reduction. The other idea is that mining harms local economies through negative impacts on the environment; which hurts local agriculture and health, leading to an increase in local poverty. By evaluating a case study of a poor rural economy driven by mining and agriculture, this study measures the net average impact of the opening and expansion of mining on local income poverty. Using ward level data combined with firm data, the study essentially uses a difference-in-differences estimation procedure, by exploiting a local input demand shock from large industrial mines, as well as changes in distance to a mine, as sources of variation. The study finds that the opening of a mine is associated with poverty reduction in surrounding communities, while the impact from an expansion of a mine depends on the type of commodity mined. Unpacking these results by commodity gives insight into the concentration of labour and community unrest in the platinum and gold mining sectors in South Africa. The findings of this study remain robust to different indicators of mine expansion, and checks for alternative explanations such as selective migration and sample checks. The study uses the Limpopo Province of South Africa as a suitable case study. DA - 2017 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2017 T1 - Does mining alleviate or exacerbate poverty: Are local community grievances really 'Much Ado about Nothing'? TI - Does mining alleviate or exacerbate poverty: Are local community grievances really 'Much Ado about Nothing'? UR - http://hdl.handle.net/11427/24930 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/24930
dc.identifier.vancouvercitationNxele M. Does mining alleviate or exacerbate poverty: Are local community grievances really 'Much Ado about Nothing'?. [Thesis]. University of Cape Town ,Faculty of Commerce ,School of Economics, 2017 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/24930en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentSchool of Economicsen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherEconomic Developmenten_ZA
dc.titleDoes mining alleviate or exacerbate poverty: Are local community grievances really 'Much Ado about Nothing'?en_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMComen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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