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Digging Deeper: The Impact of Illegal Mining on Economic Growth and Development in Ghana

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  • Asuamah Yeboah, Samuel

Abstract

Illegal mining has emerged as a pressing issue with significant implications for economic growth and development in Ghana. This systematic review examines the impact of illegal mining on the country's economy and its overall development trajectory. The study focuses on the adverse effects of illegal mining, including environmental degradation, social instability, governance challenges, and lost revenue. It explores the interconnectedness of these impacts and their implications for sustainable development goals. The review reveals that illegal mining hampers economic growth by undermining formal mining activities, reducing investor confidence, and limiting government revenue. It highlights the detrimental effects on key sectors such as agriculture, tourism, and infrastructure. The environmental consequences, including deforestation, water pollution, and soil degradation, also pose long-term challenges for sustainable economic development. Additionally, the review identifies governance gaps and regulatory weaknesses as key drivers of illegal mining in Ghana. Inadequate enforcement, corruption, and weak institutional frameworks contribute to the persistence of illegal mining activities. These factors erode the rule of law and hinder effective resource management, posing obstacles to sustainable development. The study underscores the importance of addressing illegal mining comprehensively. It emphasizes the need for enhanced regulation, enforcement, and institutional capacity building to curtail illegal mining activities and promote responsible mining practices. Strengthening governance frameworks, engaging local communities, and fostering partnerships with international stakeholders is vital for sustainable economic growth and development. By shedding light on the multifaceted impacts of illegal mining, this systematic review provides valuable insights for policymakers, researchers, and stakeholders. It underscores the urgency of taking concrete actions to combat illegal mining and create an enabling environment for responsible and sustainable mining practices in Ghana.

Suggested Citation

  • Asuamah Yeboah, Samuel, 2023. "Digging Deeper: The Impact of Illegal Mining on Economic Growth and Development in Ghana," MPRA Paper 117641, University Library of Munich, Germany, revised 18 Mar 2023.
    • Handle: RePEc:pra:mprapa:117641
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    File URL: https://mpra.ub.uni-muenchen.de/117641/1/THE%20IMPACT%20OF%20ILLEGAL%20MINING%20ON%20THE%20GHANAIAN%20ECONOMY%20FINAL%20FOR%20MPRA%20SUBMIT.pdf
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    References listed on IDEAS

    as
    1. Banchirigah, Sadia Mohammed, 2008. "Challenges with eradicating illegal mining in Ghana: A perspective from the grassroots," Resources Policy, Elsevier, vol. 33(1), pages 29-38, March.
    2. Kwadwo Afriyie & John Kuumuori Ganle & Janet Afua Abrafi Adomako, 2016. "The good in evil: a discourse analysis of the industry in Ghana," Oxford Development Studies, Taylor & Francis Journals, vol. 44(4), pages 493-508, October.
    3. Magnus Ericsson & Olof Löf, 2019. "Mining’s contribution to national economies between 1996 and 2016," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 32(2), pages 223-250, July.
    4. Ayee, Joseph & Soreide, Tina & Shukla, G. P. & Le, Tuan Minh, 2011. "Political economy of the mining sector in Ghana," Policy Research Working Paper Series 5730, The World Bank.
    Full references (including those not matched with items on IDEAS)

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    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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