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The Impact of Mining on the Ghanaian Economy: A Comprehensive Review (1992-2020)

Author

Listed:
  • Yeboah, Samuel
  • James Nyarkoh, Bright

Abstract

This review examines the impact of mining on the Ghanaian economy from 1992 to 2020. The purpose of the study is to comprehensively analyse the effects of mining on economic growth, employment, government revenue, environmental sustainability, and social outcomes in Ghana. The problem statement arises from the need to understand the implications of mining for sustainable development and inform evidence-based policy decisions in the sector. The review employs a systematic methodology to gather and analyse data from various sources, including academic literature, government reports, and industry publications. The findings reveal that mining has been a significant driver of economic growth in Ghana, contributing to the country's gross domestic product (GDP) through foreign exchange earnings, investment, and sectoral linkages. However, the sector also presents challenges in terms of environmental sustainability and social consequences. The study highlights the positive impact of mining on employment generation, both directly in mining operations and indirectly in support services. It identifies mining as a crucial source of government revenue through taxes, royalties, and dividends, supporting government budgets, infrastructure development, and social programs. Nevertheless, effective fiscal management and equitable distribution of mining revenues remain ongoing challenges. The review also addresses the environmental impacts of mining, including deforestation, water pollution, and soil degradation. It emphasizes the importance of implementing environmental regulations and responsible mining practices to mitigate these adverse effects and ensure long-term sustainability. Furthermore, the study examines the social consequences of mining, such as social disruptions, conflicts, and community development initiatives. Based on the findings, the review concludes that while mining has brought significant economic benefits to Ghana, there is a need for sustainable approaches that consider environmental protection and social well-being. The study recommends enhancing stakeholder engagement, community participation, and benefit-sharing mechanisms to address the negative social impacts and promote sustainable community development.

Suggested Citation

  • Yeboah, Samuel & James Nyarkoh, Bright, 2022. "The Impact of Mining on the Ghanaian Economy: A Comprehensive Review (1992-2020)," MPRA Paper 117502, University Library of Munich, Germany, revised 11 Jan 2023.
    • Handle: RePEc:pra:mprapa:117502
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    References listed on IDEAS

    as
    1. Aryee, Benjamin N. A., 2001. "Ghana's mining sector: its contribution to the national economy," Resources Policy, Elsevier, vol. 27(2), pages 61-75, June.
    2. Hilson, Gavin & Murck, Barbara, 2000. "Sustainable development in the mining industry: clarifying the corporate perspective," Resources Policy, Elsevier, vol. 26(4), pages 227-238, December.
    3. Hilson, Gavin, 2012. "Corporate Social Responsibility in the extractive industries: Experiences from developing countries," Resources Policy, Elsevier, vol. 37(2), pages 131-137.
    4. United Nations UN, 2015. "Transforming our World: the 2030 Agenda for Sustainable Development," Working Papers id:7559, eSocialSciences.
    5. Amankwah, R.K. & Anim-Sackey, C., 2003. "Strategies for sustainable development of the small-scale gold and diamond mining industry of Ghana," Resources Policy, Elsevier, vol. 29(3-4), pages 131-138.
    6. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    mining; Ghanaian economy; economic growth; employment; government revenue; environmental sustainability; social consequences;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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