Abstract
M.Comm.
The primary aim of this research is to indicate that the lack of economic
progress in the Northern Province is basically caused by the absence of a strong
manufacturing sector, particularly the chemical industry. The chemical industry
is a key sector in both the primary and secondary sectors. In agriculture and
mining it provides fertilizers and explosives respectively to increase output.
Diversified farming will emerge as a direct response to a rise in agricultural
output. As the population in the Northern Province is rapidly rising, the demand
for agricultural products will also rise. This will have a positive influence on the
income of farmers. As the income rises, production in agriculture will increase
which will bring about a demand for implements, tractors and other equipment.
In the manufacturing sector the chemical industry will stimulate the process of
industrialisation in the Northern Province. The industrialisation process will
involve the outward-orientation of the economy. This means that the chemical
industry will act as a leading sector by showing forward and backward linkages.
The economy of the Northern Province is performing poorly in terms of GGP.
The role of the government in providing services cannot alone generate a
sustainable economic growth. A sustainable economic growth in the Province
can take place if the chemical industry plays a crucial role in producing
chemicals which can be used in agriculture and manufacturing. Therefore this
study will show that economic growth in the Northern Province can be sustained
by growth in the chemical industry.