Socioeconomic Impacts of Mining’s Social Development and Management Program (SDMP) in Barobo, Surigao Del Sur, Philippines Using a Propensity Score Matching Analysis

Abstract

This study deals with the analysis of mining impacts on people's socioeconomic conditions in the mining areas of Barobo, Surigao del Sur, Philippines. Propensity score matching (PSM) with nearest neighbor and caliper as matching procedures has been used to eliminate selection bias and endogeneity in the estimation of impacts of mining social development and management program (SDMP) in the said areas. The results show that mining can induce households' economic indicators like accretion of asset acquisition, an increase in food budget, reduced health expenditures, and improved access to health facilities, potable water, and gasoline stations for the locals.  These outcomes are deemed relevant to the development of human capital in the concerned areas for the proper management of opportunities brought about by mining SDMP.  Based on these findings, future legislations are recommended to account and institutionalize the ways of catalyzing the income effects and the revealed improvement in welfare to manage these mining benefits judiciously with the foresight of sustainable development in Barobo, Surigao del Sur, Philippines.