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Working Paper

Gold Mining and Proto-Urbanization : Recent Evidence from Ghana

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
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World Bank, Washington, DC
Africa | Ghana
2015-07-17T21:15:11Z | 2015-07-17T21:15:11Z | 2015-06

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.

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