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We use the synthetic control method to determine the economic impact of shale exploitation on Ohio, Pennsylvania, and West Virginia. Estimation results are mixed. The shale development decreased the poverty rate and increased the employment growth rate in Pennsylvania and West Virginia in the short run. Top oil and gas producing counties in West Virginia also experienced short‐term personal income growth due to fracking. However, most of the positive impacts disappeared a few years after the initial boom periods. The shale development did not bring significant economic benefits to Ohio. Further, shale drilling activities exert a potential long‐term negative effect on population growth in all three states. [ABSTRACT FROM AUTHOR]