Abstract
The purpose of this paper is to analyze the impact of coal mining in the economic growth of Cesar and La Guajira departments, in Colombia. Descriptive statistics was initially used in order to calculate the effect of the coal mining on the economy of these departments. Subsequently, a cross-sectional regression was made and its estimation method was ordinary least squares ( OLS ). The analysis of causal effect was carried out in both departments. For this purpose, two functions were investigated: firstly regarding the mining production and secondly regarding the mining city, in order to avoid multicollinearity problems that can occur in both variables. High dependence on coal production was observed on Cesar and Guajira’s GDP , which was reflected in the increased involvement with the mining municipalities of Cesar and La Guajira departments within the departmental GDP .
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