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Working Paper 59 - The Mineral and Energy Sectors and Stages of Economic Development: A Comparative Input - Output Analysis
The purpose of this paper is to highlight the nature of the linkages between the mineral and energy sectors and the rest of the economy at various stages of national development. It also aims at identifying viable investment alternatives among several mineral activities. The analysis is based upon the concept of intersectoral “linkages” which emphasizes the importance of stimulating key sectors which have strong technological linkages with other sectors in order to stimulate economic growth. It relies upon the use of input-output (I-O) tables for three countries at various stages of economic development, namely the United States, Australia and Chile. The results are later compared with the author’s previous research work performed on Zambia and Morocco as well as similar work by another author on Brazil. This gives rise to the following specific objectives: (1) to present a quantitative framework capable of analyzing the potential impact of mineral and energy related activities on industry linkages and growth prospects, (2) to apply the methodology to three mineral producing countries, (3) to identify viable mineral and energy activities for investment, and (4) to provide policy suggestions which can be employed in the mining sector to increase domestic value-added and foreign export revenues through such investments. Finally, the implications are drawn for the potential of the proposed approach for evaluating resource-based activities other than minerals in similar situations in other countries.