Health and Extractive Resources: A Research Note based on Evidence from Indonesian Districts

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Most empirical studies on extractive resources examine their effects at the macro level and focus on economic and institutional outcomes. We perform a subnational analysis of the relationship between mineral resource dependence and health measures at the district level in Indonesia, using annual panel data from 2010 to 2020. Fixed-effect models suggest that households in mineral-dependent districts face a higher morbidity risk than households in non-dependant districts. There is no evidence of improved health services for mineral-dependent districts in the form of either higher child immunisation rates or professional birth assistance. We document economic mechanisms by examining employment and expenditure patterns, contextualising our findings within the debate on whether natural resources are a blessing or curse.