MINING OF METAL ORES INDUSTRY AND ECONOMIC GROWTH NEXUS IN ARMENIA: CHALLENGES AND PROSPECTS

The mining industry is pivotal in ensuring Armenia's foreign exchange earnings. Therefore, we investigate the role of real exports of companies representing the mining of metal ores industry using quarterly data (2012q1 2023q2) in explaining statistically significant changes in the real GDP in the short run based on the least squares estimation technique. We conclude that significant positive changes in the real GDP are not associated with the increase in the industry's real exports since the growth of the mining of metal ores industry in Armenia mainly reflects the developments in the global commodity market. Hence, we find no evidence of the “multiplier effect.” Based on the findings, we substantiate the main challenges the industry could face and highlight the prospects ahead while meeting the objectives that the Mining Sector Development Strategy (until 2035) defined to ensure the industry's growth and attract new investors.