Abstract:
Mineral development in developing countries became a very crucial source of income and economic growth. Through this study Mineral development impact on economic growth and policy implications in Tanzania was analyzed using Mineral depletion, Mineral rent, and Gross Capital formalist and labor force as independent variables and GDP annual percentage growth as the dependent variable. All data used in analysis and other explanations in this study were obtained from World Bank Databank from 1988 to 2019.
According to the results it was revealed that economic growth has a positive relationship with mineral rent, Gross capital formation and Mineral Depletion by 6.8. 0.09 And 10.20 respectively while labor force was insignificant to the study model. This concludes that in eve, increase by one (1) unit of mineral rent, Gross capital formation and mineral depletion, GDP annual percentage growth increases by 6.8. 0.09 And 10.20 units respectively.
This study's results cement the fact that mineral development adds to the economic growth as suggested by various scholars as its three variables show a positive relation to the GDP annual percentage growth, hence it suggests that poises to improve mineral development by employing new technologies, encouraging PPP, and attracting FDI as well as Mobilizing Internal/domestic resources for in-country investment should be looked upon and considered for the Mutual benefits of the country.
Also financial policies should be upgrade to enhance easy capital formation through private domestic fund mobilization and lowering borrowing cost from domestic financial institutions, all this is to encourage investment in mining industry so as to enable inclusion of the small scale miners to the industry and hence test the benefits which automatically can contribute to economic growth while benefiting the lower classes citizens‘.„." ,
