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

Samuel Yeboah and Bright James Nyarkoh

MPRA Paper from University Library of Munich, Germany

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.

Keywords: mining; Ghanaian economy; economic growth; employment; government revenue; environmental sustainability; social consequences (search for similar items in EconPapers)
JEL-codes: H11 J21 O25 Q13 Q32 (search for similar items in EconPapers)
Date: 2022-11-13, Revised 2023-01-11
New Economics Papers: this item is included in nep-env and nep-mfd
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