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The view from below: ‘lock-in’ and local procurement in the African gold mining sector

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  • Hanlin, Rebecca
  • Hanlin, Christopher

Abstract

Through linkage creation, commodity extraction has the capacity to support local industrial production and capabilities building. Drawing on the experience of supplying inputs into the East African gold mining industry, this paper examines the constraints experienced by local suppliers arising from the purchasing procedures of large mining corporations and specialist construction companies contracted to construct these mines. Lead firms become locked-in to particular ways of working which minimise the opportunities that local suppliers have in providing products and services. After reviewing the situation for local mining suppliers in East Africa, the paper examines ways in which lead firms, the suppliers themselves and others (governments and industry associations) can better support local supplier involvement.

Suggested Citation

  • Hanlin, Rebecca & Hanlin, Christopher, 2012. "The view from below: ‘lock-in’ and local procurement in the African gold mining sector," Resources Policy, Elsevier, vol. 37(4), pages 468-474.
  • Handle: RePEc:eee:jrpoli:v:37:y:2012:i:4:p:468-474
    DOI: 10.1016/j.resourpol.2012.06.005
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    References listed on IDEAS

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    1. Dosi, Giovanni, 1993. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 22(2), pages 102-103, April.
    2. Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-131, March.
    3. Olivier Cattaneo & Gary Gereffi & Cornelia Staritz, 2010. "Global Value Chains in a Postcrisis World : A Development Perspective," World Bank Publications, The World Bank, number 2509.
    4. World Bank, 2008. "Democratic Republic of Congo : Growth with Governance in the Mining Sector," World Bank Other Operational Studies 8072, The World Bank.
    5. Liebowitz, S J & Margolis, Stephen E, 1995. "Path Dependence, Lock-in, and History," Journal of Law, Economics, and Organization, Oxford University Press, vol. 11(1), pages 205-226, April.
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    Citations

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    Cited by:

    1. Judith Fessehaie & Zavareh Rustomjee & Lauralyn Kaziboni, 2016. "Can mining promote industrialization? A comparative analysis of policy frameworks in three Southern African countries," WIDER Working Paper Series 083, World Institute for Development Economic Research (UNU-WIDER).
    2. Kragelund, Peter, 2017. "The making of local content policies in Zambia's copper sector: Institutional impediments to resource-led development," Resources Policy, Elsevier, vol. 51(C), pages 57-66.
    3. repec:eee:worbus:v:53:y:2018:i:1:p:85-91 is not listed on IDEAS
    4. Macatangay, Rafael Emmanuel “Manny”, 2016. "Optimal local content requirement policies for extractive industries," Resources Policy, Elsevier, vol. 50(C), pages 244-252.

    More about this item

    Keywords

    Gold mining; Value chains; Supply chains; Linkages; East Africa; Local procurement;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • L78 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Government Policy

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