Abstract
M.Phil. (Industrial Policy)
The main purpose of this dissertation is to examine whether there are backward linkages from the gold mining (MNG) sector to the manufacturing (MAN) sector in Mali. Two empirical strategies are employed. The first uses survey data from 12 gold mining companies (GMCs) and 63 local suppliers (LSUPs) to test for backward linkages from the MNG to the MAN sector. The second approach, based on the vector autoregressive (VAR) methodology of Toda and Yamamoto (1995), utilises annual time-series data of MNG and MAN output from 1980 to 2016 to test for long-run Granger causality between the two sectors.
The results of the survey data approach show that there are backward linkages from the MNG to the MAN sector in construction materials, consumable and spare parts supply, but a weak linkage in equipment and machinery supply. The VAR analysis supports the results from the survey data. The causality tests and impulse responses indicate that there is unidirectional long-run causality from MNG to MAN output. The estimates show that an increase in MNG production of one billion CFA franc leads to a 0.54 billion CFA franc increase in MAN production. To strengthen the existing backward linkages from MNG to MAN, the dissertation suggests several policy measures.