Mining Activity and the Setting up of New Businesses in Basilicata

Natural resources have always been considered as a strategic element for thelocation of towns and the development of their economies. Recently, however,economic literature has highlighted that the effect the abundance of natural resourceshas on growth is even negative. The aim of this paper is to estimate theimpact of mining activities in Basilicata as a catalyst for new businesses. Througha methodology of Geographic Regression Discontinuity Design, the spatial variationof the number of companies in Lucania's municipalities has been analyzedand it has been estimated that the oil would increase the presence of about 0.01firms per inhabitant over the whole area where royalties have side effects. By usinga difference-in-discontinuities approach, the significance and the estimate ofthis result is maintained.