- Title
- The impact of mineral resources production on economic growth in South Africa
- Creator
- Kholwane, Noluthando
- Subject
- Economic development -- South Africa South Africa -- Economic conditions
- Date
- 2018
- Type
- Thesis
- Type
- Masters
- Type
- MCom (Economics)
- Identifier
- http://hdl.handle.net/10353/13502
- Identifier
- vital:39674
- Description
- South Africa is widely known in the world as a country rich in mineral resources mainly due to its large mineral reserves of gold and diamonds. Such wealth in mineral resources in the country raises the expectations of advanced economic growth. How the production of mineral resources influences economic growth in a country is an interesting area of investigation. Therefore, this study examined the impact of mineral resources production on economic growth using the standard econometric techniques, such as stationarity tests, Johansen co-integration test and the Vector Error Correction Model (VECM) estimation technique, using quarterly data between 1995 and 2016. In addition, diagnostic tests and impulse response analysis were conducted. In the model estimation, real gross domestic product (GDP) was regressed against mineral resource production as a percentage of GDP (MRP/GDP), Final Consumption Expenditure by Households (FCE_by Houselds), gross fixed capital formation as a percentage of GDP (excluding mining investment) (GFCF/GDP), labour productivity (LP) and Rand/ Dollar exchange rate (ER). The results from this study show that the explanatory variables without mineral resource governance positively influence GDP in the long run. On the other hand, the diagnostic test results indicate that the model is well specified and fitted since residuals are homoscedastic, normally distributed without autocorrelation. Likewise, the impulse response of real GDP is positive for mineral resource production, fixed capital formation and final consumption by household. Moreover, real GDP reacts negatively from shocks of labour productivity and exchange rate. Based on the outcomes of the study, from a policy perspective, intensified productive activities other than mineral resources production and re-investment of mineral rents could guarantee a sustainable increase in the real gross domestic product of a country in the long run. Furthermore, raw material processing should also be a consideration to foster economic growth in South Africa.
- Format
- 136 leaves
- Format
- Publisher
- University of Fort Hare
- Publisher
- Faculty of Management and Commerce
- Language
- English
- Rights
- University of Fort Hare
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UFH Department of Economics
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | KHOLWANE AB 201604174 MCOM.pdf | 1 MB | Adobe Acrobat PDF | View Details Download |