Mining and sustainable development in Sierra Leone : the role of the role of institutional quality

Abstract

While mining can drive economic growth, create jobs, and promote infrastructural development, it also poses risks to the environment, human health, and social well-being. Therefore, to achieve sustainable development, responsible mining is crucial. This study empirically examines the role of institutional quality in the mining-sustainable devel- opment nexus in Sierra Leone. With the use of the planetary pressures-adjusted human development index (PHDI) as a comprehensive measure of sustainable development, the study is able to integrate economic, social, and environmental dimensions. The autoregressive distributed lag (ARDL) model confirms the existence of both short-run and long-run dynamics. The results of the study show that the contribution of mining to sustainable development depends on institutional quality, as framed by the resource curse hypothesis and institutional theory. The results indicate that weak institutions worsen the adverse effect of mining on sustainable development in Sierra Leone. Policy reforms that strengthen institutions and promote economic diversification will help regulate mining and transform mineral rents into sustainable development. This study is an advancement of the discourse on mining and sustainable development amidst weak institutions with insights from a resource-dependent economy.