Mining and mistrust in government

Natural resource extraction can undermine institutions through its negative impact on corruption and public goods provision, potentially affecting individual trust in local government. We examine this conjecture by combining geo-referenced survey data with spatial data on mine locations across 28 post-communist countries of Central and Eastern Europe and the former Soviet Union. Using information on the development status of mineral reserves, we employ a cross-sectional difference-in-differences approach comparing individuals living near active versus not-yet-active mines. Our findings reveal a robust negative relationship between mining production and trust in local government. Analysis of mechanisms indicates that corruption perceptions and practices primarily drive this relationship. While examining alternative non-institutional channels, we find that environmental concerns may also contribute to government mistrust in specific contexts.

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Publication Details

Journal
European Economic Review
Published
2025-03-23
DOI
https://doi.org/10.1016/j.euroecorev.2025.105002
Citations
2
Primary Topic
Natural Resources and Economic Development
Type
article
Field-Weighted Citation Impact
6.17
Controls
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article

Mining and mistrust in government

Astghik Mavisakalyan, Anna Minasyan
2 citations
European Economic Review
Natural Resources and Economic Development
6.17
article

Mining and mistrust in government

Astghik Mavisakalyan, Anna Minasyan
article en
2 citations

Abstract

Natural resource extraction can undermine institutions through its negative impact on corruption and public goods provision, potentially affecting individual trust in local government. We examine this conjecture by combining geo-referenced survey data with spatial data on mine locations across 28 post-communist countries of Central and Eastern Europe and the former Soviet Union. Using information on the development status of mineral reserves, we employ a cross-sectional difference-in-differences approach comparing individuals living near active versus not-yet-active mines. Our findings reveal a robust negative relationship between mining production and trust in local government. Analysis of mechanisms indicates that corruption perceptions and practices primarily drive this relationship. While examining alternative non-institutional channels, we find that environmental concerns may also contribute to government mistrust in specific contexts.

European Economic ReviewVol. 175
University of Groningen (NL), Curtin University (AU)
Decent work and economic growth
Openalex Percentile: Top 5%
Natural Resources and Economic Development
6.17
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