Mining and quality of public services: The role of local governance and decentralization

This paper investigates the local effects of mining on quality public services and people’s optimism about their future living conditions in Africa. Most importantly, it assesses moderating role institutions governments’ taxing rights shaping proximity-to-mine effects. The empirical framework connects more than 130,000 respondents from Afrobarometer survey data (2005–2015) to closest mines based geolocation coordinates enumeration areas (EA) respective status SNL Metals & Mining by S&P. geo-referenced are matched with new indicators across African continent. Using a difference-in-differences strategy, results indicate that citizens near an active mine less likely approve government performance key goods – including health, job creation improving standards poor. On governance rights, findings point negative impact corruption, yet positive authorities’ discretion over tax revenues. However, powers tends reduce environments poor governance, high incidence bribe payment low level trust officials. Residents communities corruption comparatively high-level raising revenue ability have highest rate appraisal compared other scenarios.