The nexus between mining production and economic growth in South Africa

The production crisis in the mining sector is a great concern to the South African economy. This happens regardless of the policies and implementation of investment strategies that the government has put in the industry, which still has a steady contribution to the gross domestic product. The aim of...

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Main Authors:	Nhlangwini, Pamela, Mongale, Itumeleng Pleasure
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2019
Online Access:	http://journalarticle.ukm.my/14141/ http://journalarticle.ukm.my/14141/ http://journalarticle.ukm.my/14141/1/jeko_53%283%29-8.pdf

id	ukm-14141
recordtype	eprints
spelling	ukm-141412020-02-07T10:55:01Z http://journalarticle.ukm.my/14141/ The nexus between mining production and economic growth in South Africa Nhlangwini, Pamela Mongale, Itumeleng Pleasure The production crisis in the mining sector is a great concern to the South African economy. This happens regardless of the policies and implementation of investment strategies that the government has put in the industry, which still has a steady contribution to the gross domestic product. The aim of this study was to investigate the relationship between mining production, government expenditure and economic growth in South Africa. As a resource-endowed country that depends primarily on minerals to enhance growth, the operation in mining production is crucial. The paper employed the vector error correction model to analyze the annual time series data from the South African Reserve Bank covering the period 1983 to 2015. Preliminary results show that all variables were found to be stationary at first difference. Subsequently, the cointegration results indicated that there was at least one cointegrating equation, which confirmed the existence of a long-run relationship in the system. The long-run analysis showed that mining production excluding gold has a significant coefficient compared to all other variables, and has a positive relationship with expenditure on gross domestic product. The mining production of gold showed a negative relationship with expenditure on the gross domestic product, which supports the ‘resource curse’ theory. Finally, the short-run analysis showed that the system will come back to equilibrium. The study recommends that policymakers should formulate policies that will encourage and attract both local and international investors in this industry, especially in mining production excluding gold. Penerbit Universiti Kebangsaan Malaysia 2019 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/14141/1/jeko_53%283%29-8.pdf Nhlangwini, Pamela and Mongale, Itumeleng Pleasure (2019) The nexus between mining production and economic growth in South Africa. Jurnal Ekonomi Malaysia, 53 (3). pp. 1-14. ISSN 0127-1962 http://www.ukm.my/fep/jem/content/2019-3.html
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	The production crisis in the mining sector is a great concern to the South African economy. This happens regardless of the policies and implementation of investment strategies that the government has put in the industry, which still has a steady contribution to the gross domestic product. The aim of this study was to investigate the relationship between mining production, government expenditure and economic growth in South Africa. As a resource-endowed country that depends primarily on minerals to enhance growth, the operation in mining production is crucial. The paper employed the vector error correction model to analyze the annual time series data from the South African Reserve Bank covering the period 1983 to 2015. Preliminary results show that all variables were found to be stationary at first difference. Subsequently, the cointegration results indicated that there was at least one cointegrating equation, which confirmed the existence of a long-run relationship in the system. The long-run analysis showed that mining production excluding gold has a significant coefficient compared to all other variables, and has a positive relationship with expenditure on gross domestic product. The mining production of gold showed a negative relationship with expenditure on the gross domestic product, which supports the ‘resource curse’ theory. Finally, the short-run analysis showed that the system will come back to equilibrium. The study recommends that policymakers should formulate policies that will encourage and attract both local and international investors in this industry, especially in mining production excluding gold.
format	Article
author	Nhlangwini, Pamela Mongale, Itumeleng Pleasure
spellingShingle	Nhlangwini, Pamela Mongale, Itumeleng Pleasure The nexus between mining production and economic growth in South Africa
author_facet	Nhlangwini, Pamela Mongale, Itumeleng Pleasure
author_sort	Nhlangwini, Pamela
title	The nexus between mining production and economic growth in South Africa
title_short	The nexus between mining production and economic growth in South Africa
title_full	The nexus between mining production and economic growth in South Africa
title_fullStr	The nexus between mining production and economic growth in South Africa
title_full_unstemmed	The nexus between mining production and economic growth in South Africa
title_sort	nexus between mining production and economic growth in south africa
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2019
url	http://journalarticle.ukm.my/14141/ http://journalarticle.ukm.my/14141/ http://journalarticle.ukm.my/14141/1/jeko_53%283%29-8.pdf
first_indexed	2023-09-18T20:06:26Z
last_indexed	2023-09-18T20:06:26Z
_version_	1777407189374205952

The nexus between mining production and economic growth in South Africa

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