Title: Mining activities and local economic development: evidence from Indonesian provinces

Authors: Jamal Wiwoho; Irwan Trinugroho; Evan Lau

Addresses: Faculty of Law, Universitas Sebelas Maret, Indonesia, Jl. Ir. Sutami 36A, Kentingan, Surakarta, 57126, Indonesia ' Center for Fintech and Banking and Faculty of Economics and Business, Universitas Sebelas Maret, Indonesia Jl. Ir. Sutami 36A, Kentingan, Surakarta, 57126, Indonesia ' Faculty of Economics and Business, Universiti Malaysia Sarawak, 94300, Kota Samarahan, Sarawak, Malaysia

Abstract: There has been a long debate on the benefits of mining activities to the local society, which is reflected in some economic indicators. In this study, we therefore empirically examine the impact of mining activities on the regional economy across provinces in Indonesia over the period of 2013-2017, ending up with 165 observations. We partially support our hypothesis by revealing that mining activities, measured by the total registered mining corporations in a province, are positively associated with local economic outputs proxied by regional GDP and regional GDP per capita. However, our study does not investigate the environmental impact of mining activities as highlighted by some previous studies.

Keywords: mining activities; regional economics; regional GDP; GDP per capita; Indonesia.

DOI: 10.1504/IJTGM.2022.128365

International Journal of Trade and Global Markets, 2022 Vol.16 No.4, pp.349 - 358

Received: 23 Sep 2019
Accepted: 29 Dec 2019
Published online: 18 Jan 2023 *

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