Gold Mining and Proto-Urbanization

Central place theory predicts that agglomeration can arise from external shocks. This paper investigates whether gold mining is a catalyst for proto-urbanization in rural Ghana. Using cross-sectional data, the analysis finds that locations within 10 kilometers from gold mines have more night light and proportionally higher employment in industry and services and in the wage sector. Non-farm employment decreases at 20–30 kilometers distance to gold mines. These findings are consistent with agglomeration effects that induce non-farm activities to coalesce in one particular location. This paper finds that, over time, an increase in gold production is associated with more wage employment and apprenticeship, and fewer people employed in private informal enterprises. It also finds that the changes arising from increasing gold production are not reversed when large gold mines shrink. However this pattern cannot be ascribed unambiguously to agglomeration effects, given an increase in informal mining after formal mines decrease output is also observed.

Bibliographic Details

Main Authors:	Fafchamps, Marcel, Koelle, Michael, Shilpi, Forhad
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2015-06
Subjects:	CLOSED MINES, GOLD PRICES, EMPLOYMENT, SOCIAL NORMS, POPULATION CENSUSES, LARGE-SCALE MINES, EXTRACTIVE RESOURCES, ECONOMIC GROWTH, NEGATIVE HEALTH CONSEQUENCES, WORKING-AGE POPULATION, URBANIZATION, UNDERGROUND MINES, INFORMAL MINERS, SERVICE SECTOR, AGRICULTURAL PRODUCTION, RESOURCE EXTRACTION, GOLD MINING, URBAN SETTLEMENTS, MERCURY, MINING SECTOR, LABOR FORCE, DEVELOPING COUNTRIES, TREND, INFRASTRUCTURE DEVELOPMENT, FEMALE EMPLOYMENT, POLICY DISCUSSIONS, SCALE MINING, HIGHWAY SYSTEM, PUBLICATIONS, ROUTES, ADULT POPULATION, WEALTH, CLOSURE, POPULATION SIZE, URBAN CENTER, UNDERGROUND, HEALTH FACILITIES, CATALYST, TRANSPORTATION INFRASTRUCTURE, KNOWLEDGE, LABOR MARKET, MINERALS INDUSTRY, ROAD, RATE OF POPULATION GROWTH, ROAD NETWORK, MINERAL DEPOSITS, TRANSPORT, POPULATION GROWTH, INTERSTATE HIGHWAY SYSTEM, TRANSPORT ACTIVITIES, SMALL-SCALE MINING ACTIVITIES, GOLD, GOLD MINES, ABANDONED MINES, NON-FARM EMPLOYMENT, INDUSTRIALIZATION, EXTERNALITIES, SAND, MINING COMPANIES, EMPLOYMENT COMPOSITION, MINING ACTIVITY, TRUE, POLLUTION, SCALE MINING ACTIVITIES, CONCENTRATION OF POPULATION, LABOR, NATURAL RESOURCES, ACTIVE MINES, TAILINGS, INFRASTRUCTURE, LAND USE, CITY POPULATION, MINING LOCATIONS, PROGRESS, GOLD MINE, UNEMPLOYMENT, TRANSPORTATION, GEOLOGY, POLICY RESEARCH WORKING PAPER, CROSS-SECTIONAL DATA, CHANGES IN POPULATION SIZE, LARGE CITIES, URBAN CENTERS, ACCESSIBILITY, MINES, POPULATION DENSITY, URBAN AREAS, NUTRITION, RAILWAY, HIGHWAYS, MINERAL INDUSTRY, POLICY, WAGE SECTOR, MINING COMMUNITIES, SKILLED LABOR, ROADS, GEOLOGICAL SURVEY, MINING ACTIVITIES, HIGHWAY, CLOSURES, RAILWAYS, ECONOMIES OF SCALE, RESOLUTION, SMALL MINES, SPATIAL DISTRIBUTION, CENSUSES, ACCIDENTS, RURAL AREAS, RAILROADS, URBAN CENTRES, FEWER PEOPLE, POPULATION, LABOR SUPPLY, MARITAL STATUS, RURAL COUNTIES, MINING AREAS, MARRIED WOMEN, POLICY RESEARCH, SMALL-SCALE MINING, SMALL-SCALE, GOLD DEPOSITS, LOCAL DEVELOPMENT, INFORMAL MINING, WOMEN, NOISE, LABOR MARKETS, HEALTH CONSEQUENCES, RURAL DEVELOPMENT, GOLD PRODUCTION, WAGE EMPLOYMENT, MINERAL MINING, AGGLOMERATION EFFECTS, DEVELOPMENT POLICY, MINERALS,
Online Access:	http://documents.worldbank.org/curated/en/2015/06/24736278/gold-mining-proto-urbanization-recent-evidence-ghana https://hdl.handle.net/10986/22227
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