Abstract
Mining in Colombia faces several challenges such as the presence of illegal armed-groups, high poverty rates, low-tech activities, and negative environmental effects. This article analyzes the relationship between mining and poverty in rural Colombia. We estimate direct and indirect effects of mining activity on the multidimensional poverty index at the municipality level using a Durbin spatial model. Results suggest that mining with titles is not correlated with poverty levels, while mining without titles tends to increase poverty in the same municipality. In general, there is no evidence of indirect effects or spillover effects of mining on poverty across municipalities in Colombia.
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