Does a Windfall Lead to a Downfall? A Study of Mineral Rents and Genuine Growth in Selected African Countries

Ishmael Ackah; Dankwa Kankam; Kwaku Appiah- Adu

doi:doi:10.11648/j.jenr.20140301.12

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Does a Windfall Lead to a Downfall? A Study of Mineral Rents and Genuine Growth in Selected African Countries

Ishmael Ackah, Dankwa Kankam, Kwaku Appiah- Adu

Published in Journal of Energy and Natural Resources (Volume 3, Issue 1)

Received: 25 March 2014 Accepted: 8 April 2014 Published: 10 April 2014

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Abstract

The mining industry helps governments to increase revenues resulting in job creation, infrastructural development and enhancing the standard of living of the local communities. However, it is also a potential source of environmental pollution and rent-seeking. This study examines the relationship between mineral rents and genuine income in a multivariate panel data analysis in Botswana, Egypt, Ghana, Morocco, South Africa and Zambia at the aggregate and industrial levels. The findings suggest that mineral revenues have been a blessing to these countries at the aggregate level but affected industrial growth negatively. These findings support evidence in the literature that mineral resource abundance slows growth in industrial output. The study also reveals that growth in mineral rich countries is principally driven by investment in capital and energy consumption. It is therefore recommended that mineral revenues should be invested in capital and alternative energy sources to boost aggregate and industrial growth.

Published in	Journal of Energy and Natural Resources (Volume 3, Issue 1)
DOI	10.11648/j.jenr.20140301.12
Page(s)	6-10
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Mineral Rents, Genuine Income, Energy Consumption, Resource Curse

References

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[7]	Brunnschweiler, C. N., &Bulte, E. H. (2008). The resource curse revisited and revised: A tale of paradoxes and red herrings. Journal of Environmental Economics and Management, 55(3), 248-264.
[8]	Cavalcanti, Tiago V. de V., Kamiar Mohaddes, and Mehdi Raissi (2009), “Growth, Development and Natural Resources: New Evidence Using a Heterogeneous Panel Analysis,” Faculty of Economics, University of Cambridge (mimeo).
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[17]	Kuhndt M, Tessema F, and Martin H. (2008) Global Value Chain Governance for Resource Efficiency Building Sustainable Consumption and Production Bridges across the Global Sustainability Divides. Environmental Research, Engineering and Management, 2008. No. 3(45), P. 33-41.
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APA Style

Ishmael Ackah, Dankwa Kankam, Kwaku Appiah- Adu. (2014). Does a Windfall Lead to a Downfall? A Study of Mineral Rents and Genuine Growth in Selected African Countries. Journal of Energy and Natural Resources, 3(1), 6-10. https://doi.org/10.11648/j.jenr.20140301.12

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ACS Style

Ishmael Ackah; Dankwa Kankam; Kwaku Appiah- Adu. Does a Windfall Lead to a Downfall? A Study of Mineral Rents and Genuine Growth in Selected African Countries. J. Energy Nat. Resour. 2014, 3(1), 6-10. doi: 10.11648/j.jenr.20140301.12

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AMA Style

Ishmael Ackah, Dankwa Kankam, Kwaku Appiah- Adu. Does a Windfall Lead to a Downfall? A Study of Mineral Rents and Genuine Growth in Selected African Countries. J Energy Nat Resour. 2014;3(1):6-10. doi: 10.11648/j.jenr.20140301.12

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@article{10.11648/j.jenr.20140301.12,
  author = {Ishmael Ackah and Dankwa Kankam and Kwaku Appiah- Adu},
  title = {Does a Windfall Lead to a Downfall? A Study of Mineral Rents and Genuine Growth in Selected African Countries},
  journal = {Journal of Energy and Natural Resources},
  volume = {3},
  number = {1},
  pages = {6-10},
  doi = {10.11648/j.jenr.20140301.12},
  url = {https://doi.org/10.11648/j.jenr.20140301.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jenr.20140301.12},
  abstract = {The mining industry helps governments to increase revenues resulting in job creation, infrastructural development and enhancing the standard of living of the local communities. However, it is also a potential source of environmental pollution and rent-seeking. This study examines the relationship between mineral rents and genuine income in a multivariate panel data analysis in Botswana, Egypt, Ghana, Morocco, South Africa and Zambia at the aggregate and industrial levels. The findings suggest that mineral revenues have been a blessing to these countries at the aggregate level but affected industrial growth negatively. These findings support evidence in the literature that mineral resource abundance slows growth in industrial output. The study also reveals that growth in mineral rich countries is principally driven by investment in capital and energy consumption. It is therefore recommended that mineral revenues should be invested in capital and alternative energy sources to boost aggregate and industrial growth.},
 year = {2014}
}

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TY  - JOUR
T1  - Does a Windfall Lead to a Downfall? A Study of Mineral Rents and Genuine Growth in Selected African Countries
AU  - Ishmael Ackah
AU  - Dankwa Kankam
AU  - Kwaku Appiah- Adu
Y1  - 2014/04/10
PY  - 2014
N1  - https://doi.org/10.11648/j.jenr.20140301.12
DO  - 10.11648/j.jenr.20140301.12
T2  - Journal of Energy and Natural Resources
JF  - Journal of Energy and Natural Resources
JO  - Journal of Energy and Natural Resources
SP  - 6
EP  - 10
PB  - Science Publishing Group
SN  - 2330-7404
UR  - https://doi.org/10.11648/j.jenr.20140301.12
AB  - The mining industry helps governments to increase revenues resulting in job creation, infrastructural development and enhancing the standard of living of the local communities. However, it is also a potential source of environmental pollution and rent-seeking. This study examines the relationship between mineral rents and genuine income in a multivariate panel data analysis in Botswana, Egypt, Ghana, Morocco, South Africa and Zambia at the aggregate and industrial levels. The findings suggest that mineral revenues have been a blessing to these countries at the aggregate level but affected industrial growth negatively. These findings support evidence in the literature that mineral resource abundance slows growth in industrial output. The study also reveals that growth in mineral rich countries is principally driven by investment in capital and energy consumption. It is therefore recommended that mineral revenues should be invested in capital and alternative energy sources to boost aggregate and industrial growth.
VL  - 3
IS  - 1
ER  -

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Author Information

Ishmael Ackah

Department of Economics, Portsmouth Business School, University of Portsmouth, Portsmouth, UK
Dankwa Kankam

Opoku, Andoh& Co, Chartered Accountants and Management Consultants, Accra, Ghana
Kwaku Appiah- Adu

Central Business School, Central University College, Accra, Ghana

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APA Style

Ishmael Ackah, Dankwa Kankam, Kwaku Appiah- Adu. (2014). Does a Windfall Lead to a Downfall? A Study of Mineral Rents and Genuine Growth in Selected African Countries. Journal of Energy and Natural Resources, 3(1), 6-10. https://doi.org/10.11648/j.jenr.20140301.12

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ACS Style

Ishmael Ackah; Dankwa Kankam; Kwaku Appiah- Adu. Does a Windfall Lead to a Downfall? A Study of Mineral Rents and Genuine Growth in Selected African Countries. J. Energy Nat. Resour. 2014, 3(1), 6-10. doi: 10.11648/j.jenr.20140301.12

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AMA Style

Ishmael Ackah, Dankwa Kankam, Kwaku Appiah- Adu. Does a Windfall Lead to a Downfall? A Study of Mineral Rents and Genuine Growth in Selected African Countries. J Energy Nat Resour. 2014;3(1):6-10. doi: 10.11648/j.jenr.20140301.12

Copy | Download

@article{10.11648/j.jenr.20140301.12,
  author = {Ishmael Ackah and Dankwa Kankam and Kwaku Appiah- Adu},
  title = {Does a Windfall Lead to a Downfall? A Study of Mineral Rents and Genuine Growth in Selected African Countries},
  journal = {Journal of Energy and Natural Resources},
  volume = {3},
  number = {1},
  pages = {6-10},
  doi = {10.11648/j.jenr.20140301.12},
  url = {https://doi.org/10.11648/j.jenr.20140301.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jenr.20140301.12},
  abstract = {The mining industry helps governments to increase revenues resulting in job creation, infrastructural development and enhancing the standard of living of the local communities. However, it is also a potential source of environmental pollution and rent-seeking. This study examines the relationship between mineral rents and genuine income in a multivariate panel data analysis in Botswana, Egypt, Ghana, Morocco, South Africa and Zambia at the aggregate and industrial levels. The findings suggest that mineral revenues have been a blessing to these countries at the aggregate level but affected industrial growth negatively. These findings support evidence in the literature that mineral resource abundance slows growth in industrial output. The study also reveals that growth in mineral rich countries is principally driven by investment in capital and energy consumption. It is therefore recommended that mineral revenues should be invested in capital and alternative energy sources to boost aggregate and industrial growth.},
 year = {2014}
}

Copy | Download

TY  - JOUR
T1  - Does a Windfall Lead to a Downfall? A Study of Mineral Rents and Genuine Growth in Selected African Countries
AU  - Ishmael Ackah
AU  - Dankwa Kankam
AU  - Kwaku Appiah- Adu
Y1  - 2014/04/10
PY  - 2014
N1  - https://doi.org/10.11648/j.jenr.20140301.12
DO  - 10.11648/j.jenr.20140301.12
T2  - Journal of Energy and Natural Resources
JF  - Journal of Energy and Natural Resources
JO  - Journal of Energy and Natural Resources
SP  - 6
EP  - 10
PB  - Science Publishing Group
SN  - 2330-7404
UR  - https://doi.org/10.11648/j.jenr.20140301.12
AB  - The mining industry helps governments to increase revenues resulting in job creation, infrastructural development and enhancing the standard of living of the local communities. However, it is also a potential source of environmental pollution and rent-seeking. This study examines the relationship between mineral rents and genuine income in a multivariate panel data analysis in Botswana, Egypt, Ghana, Morocco, South Africa and Zambia at the aggregate and industrial levels. The findings suggest that mineral revenues have been a blessing to these countries at the aggregate level but affected industrial growth negatively. These findings support evidence in the literature that mineral resource abundance slows growth in industrial output. The study also reveals that growth in mineral rich countries is principally driven by investment in capital and energy consumption. It is therefore recommended that mineral revenues should be invested in capital and alternative energy sources to boost aggregate and industrial growth.
VL  - 3
IS  - 1
ER  -

Copy | Download