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Title: The nature and determinants of backward linkages in emerging mineral commodity sectors : a case study of gold mining in Tanzania
Author: Mjimba, Vuyo
Awarding Body: Open University
Current Institution: Open University
Date of Award: 2012
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Abstract:
In a world in which the routes to industrialisation through import-substituting and labour-intensive manufactures are constrained, this thesis interrogates an alternative industrialisation route; industrialisation through backward linkages into the commodities sector. This is in line with conventional economic wisdom that since the 1950s has argued that diversification from primary commodities through industrialisation can be a route to sustainable economic growth and development. This study interrogates the determinants of industrialisation through backward linkages in a case study of the large-scale gold mining industry of Tanzania, focusing on the exploration and production sub-chains of the industry's value chain. The study findings show three important issues (i) the two sub-chains are dominated by Multinational Corporations, (ii) the exploration sub-chain utilises comparatively more domestic linkages compared to the production sub-chain and, (iii) most importantly, in both sub-chains domestic linkages are marginal. Domestic inputs are limited to simple and low cost supplies such as food and beverages whereas high value inputs are imported, with very limited or no domestic value addition. The study finds that although the marginal domestic linkages can be attributed to the MNCs' practices of utilising long-established relations with foreign goods and services suppliers, Tanzania's capability deficits (infrastructure and human capital) and a weak and sometimes contradictory policy environment significantly contribute to the nature and extent of linkages in the sub-chains. Despite the capability deficits, the government of Tanzania has maintained a 'non- interventionist' policy regime in addressing market deficits that are limiting the development and deepening of domestic linkages into industry. Given that some market deficits cannot be addressed by the private sector, the study concludes that Tanzania could benefit from state intervention that confers systematic efficiency and competitiveness to the domestic manufacturing and services industry; in other words Tanzania and other Sub-Saharan African commodity producers have a case for industrial policy.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID: uk.bl.ethos.551625  DOI: Not available
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