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1 – 10 of over 70000The purpose of this paper is to investigate the foreign direct investments (FDI)-growth nexus and the impact of natural resource abundance in the host country on the…
Abstract
Purpose
The purpose of this paper is to investigate the foreign direct investments (FDI)-growth nexus and the impact of natural resource abundance in the host country on the FDI-growth nexus.
Design/methodology/approach
For a large data set of 104 countries for the period 1996-2015, Arellano and Bond’s GMM estimation method is applied to investigate the impact of FDI inflow on economic growth and the role of the natural resource sector on the FDI-growth relationship.
Findings
The paper found a positive and significant effect of FDI inflows on economic growth of the host country. However, the impact of FDI inflows on economic growth changes with the changes in the size of the natural resource sector. The estimated positive impact of FDI inflows on economic growth declines with the expansion in the size of natural resources. Beyond a certain limit, a further expansion in the size of natural resource sector will lead to a negative effect of FDI on economic growth.
Research limitations/implications
The paper found a positive and significant impact of FDI inflows on economic growth of the host country. However, the impact of FDI inflows on economic growth changes with the changes in the size of the natural resource sector. The estimated positive impact of FDI inflows on economic growth declines with the expansion in the size of the natural resources. Beyond a certain limit, a further expansion in the size of the natural resource sector will lead to a negative effect of FDI on economic growth. The same analysis is repeated for groups of countries divided into different income groups. FDI inflows are found to have significant growth enhancing role in all three groups of countries. However, FDI inflows-induced growth was found to be more pronounced in the middle- and low-income countries compared to high-income countries. Further, FDI-induced economic growth is slowed down in low-income and middle-income countries by the increase in size of the natural resource sector. While in high-income countries, the size of the natural resource sector has no significant role on the FDI-growth nexus.
Practical implications
While countries use their natural resource sector as an instrument to attract FDI into the countries, low- and middle-income countries face the dilemma of experiencing the resource curse in the form of watered down FDI-induced growth. Therefore, low- and middle-income countries need to try at the same time to attract FDI into the non-resources sector to keep the relative size of the natural resource sector low as to avoid hampering the FDI-induced economic growth. High-income countries, on the other hand, do not experience the FDI-induced growth hampering impact of the natural resource sector. Therefore, high-income countries should attract FDI into the countries regardless of the sector attracting the foreign investments.
Originality/value
The paper is part of the author’s PhD research and is an original contribution.
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Dimitra Kalaitzi, Aristides Matopoulos, Michael Bourlakis and Wendy Tate
The purpose of this paper is to explore the implications of natural resource scarcity (NRS) for companies’ supply chain strategies.
Abstract
Purpose
The purpose of this paper is to explore the implications of natural resource scarcity (NRS) for companies’ supply chain strategies.
Design/methodology/approach
Drawing on the resource dependence theory (RDT), a conceptual model is developed and validated through the means of exploratory research. The empirical work includes the assessment of qualitative data collected via 22 interviews representing six large multinational companies from the manufacturing sector.
Findings
When the resources are scarce and vitally important, companies use buffering strategies. Buffering and bridging strategies are preferred when there are a few alternative suppliers for the specific resource and when there is limited access to scarce natural resources.
Research limitations/implications
The research focuses on large multinational manufacturing companies so results may not be generalised to other sectors and to small- and medium-sized firms. Future research needs to examine the implications of NRS for organisational performance.
Practical implications
This research provides direction to manufacturing companies for adopting the best supply chain strategy to cope with NRS.
Originality/value
This paper adds to the body of knowledge by providing new data and empirical insights into the issue of NRS in supply chains. The RDT has not been previously employed in this context. Past studies are mainly conceptual and, thus, the value of this paper comes from using a qualitative approach on gaining in-depth insights into supply chain-related NRS strategies and its antecedents.
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Arshad Hayat and Muhammad Tahir
The aim of this paper is to investigate the contingency effect of natural resource abundance on the foreign direct investment (FDI)–growth relationship in a nonlinear…
Abstract
Purpose
The aim of this paper is to investigate the contingency effect of natural resource abundance on the foreign direct investment (FDI)–growth relationship in a nonlinear (threshold) model.
Design/methodology/approach
The authors use the fixed effect threshold model for panel data with annual frequency for 83 countries and estimate threshold level of natural resource abundance that split the sample and change the FDI–growth relationship.
Findings
The results show that FDI has a strong positive impact on the economic growth of the host country if the host country's natural resources export is below the statistically significant estimated threshold. However, this FDI-induced economic growth is watered-down if the countries natural resources export is larger than the estimated threshold.
Originality/value
The results show that FDI has a strong positive impact on the economic growth of the host country if the host country's natural resources export is below the statistically significant estimated threshold. However, this FDI-induced economic growth is watered-down if the countries natural resources export is larger than the estimated threshold. The results are robust for alternative indicators of natural resources, i.e. natural resources rents.
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Dimitra Kalaitzi, Aristides Matopoulos, Michael Bourlakis and Wendy Tate
The purpose of this paper is to investigate the implications of supply chain strategies that manufacturing companies can use to minimise or overcome natural resource…
Abstract
Purpose
The purpose of this paper is to investigate the implications of supply chain strategies that manufacturing companies can use to minimise or overcome natural resource scarcity, and ultimately improve resource efficiency and achieve competitive advantage. The relationship between resource efficiency and competitive advantage is also explored.
Design/methodology/approach
The proposed research model draws on resource dependence theory. Data were collected from 183 logistics, purchasing, sustainability and supply chain managers from various manufacturing companies and analysed by applying the partial least squares structural equation modelling technique.
Findings
The results indicate that both buffering and bridging strategies improve resource efficiency; however, only bridging strategies seem to lead to firm’s competitive advantage in terms of ownership and accessibility to resources. The relationship between resource efficiency and competitive advantage is not supported.
Research limitations/implications
Future research could confirm the robustness of these findings by using a larger sample size and taking into account other supply chain members.
Practical implications
This research provides guidance to managers faced with the growing risk of resource scarcity to achieve a resource efficient supply chain and an advantage over competitors.
Originality/value
Studies have explored the appropriate strategies for minimising dependencies caused by the scarcity of natural resources in the field of supply chain management; however, there is limited empirical work on investigating the impact of these strategies on resource efficiency and competitive advantage.
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John E. Bell, Diane A. Mollenkopf and Hannah J. Stolze
This research aims to provide a theoretical framework for exploring how firms can respond to the growing threat of natural resource scarcity. Specifically, the role of…
Abstract
Purpose
This research aims to provide a theoretical framework for exploring how firms can respond to the growing threat of natural resource scarcity. Specifically, the role of closed‐loop supply chain management is examined as a means for creating resource advantages that can lead to marketplace competitive advantages.
Design/methodology/approach
The research extends previous theoretical research, integrating natural resource scarcity and closed‐loop supply chain management for the first time. Resource‐advantage theory is employed as the theoretical lens for the research model and propositions.
Findings
The findings deepen understanding of the forces that create natural resource scarcity conditions in the supply chain, and highlight the need for higher order closed‐loop capabilities that have the ability to mitigate natural resource scarcity.
Research limitations/implications
The theoretical model and six research propositions suggest relationships between natural resource scarcity, closed‐loop capabilities, and firm level performance that need to be tested empirically. Future research opportunities and methodologies are suggested.
Practical implications
Growing natural resource scarcity is already having a major impact on many firms and industries; therefore, this research has significant managerial implications due to supply risks and potential disruptions caused by insufficient natural resources in current and future supply chains.
Originality/value
This paper seeks to increase discussion about natural resource scarcity and bring it into focus as a relevant supply chain topic related to closed‐loop supply chain capabilities and the internal firm level resources needed to ensure performance in a changing world.
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Kwasi Dartey-Baah, Kwesi Amponsah-Tawiah and David Aratuo
The paper aims to assess the institutional readiness of Ghana prior to and after the production of her first oil. The paper also assesses the influence of politics in…
Abstract
Purpose
The paper aims to assess the institutional readiness of Ghana prior to and after the production of her first oil. The paper also assesses the influence of politics in directing the appropriate use of the oil rents in facilitating the developmental needs of the country.
Design/methodology/approach
The paper uses a literature review of the main theories regarding national politics and institutional policies in explaining the economic demise of a country due to a natural resource find. It also uses the natural resource find in Norway as a case study, drawing lessons from the effectiveness of Norway’s institutional policies in harnessing maximum benefits from their oil find and how developing nations such as Ghana can do same.
Findings
The paper establishes that Ghana’s institutional architecture as regards the production of oil and gas is fraught with inadequacies on all fronts as regards regulations, regulators and the needed logistics. Additionally, the paper also highlights the role of Ghana’s political elite in perpetuating these institutional inadequacies.
Originality/value
The paper highlights the insufficiencies in the institutional readiness for Ghana’s oil find and brings to the fore the influence of Ghana’s politics in contributing to these inadequacies.
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The purpose of this study is to investigate the relationship between local population, natural and cultural resources on tourist quality an ecotourism product in Seagrass…
Abstract
Purpose
The purpose of this study is to investigate the relationship between local population, natural and cultural resources on tourist quality an ecotourism product in Seagrass Trikora Conservation Area, Bintan Regency and Riau Island.
Design/methodology/approach
The research model portrayed in this case consists of three variables (tourists, local population and resources); these variables try to describe how ecotourism in Riau Island can be developed. This study is based on a survey conducted in June 2015 of 200 Indonesian citizens and residents. List contains 900 potential participants that were filtered from numerous public sources and from the researchers’ professional and social contacts. The interviewers were contacted to alert them to participate in the survey. A total of 200 completed responses were received within 10 weeks of survey, and 200 responses were successfully collected. These responses are analyzed and presented in this research.
Findings
This study found that higher quality of the local population, natural resources and cultural resources would have an impact on improving ecotourism quality. On the other hand, higher ecotourism quality would be able to improve the performance of ecotourism. The implications of this research contributed to the development of ecotourism in the Riau Island: improving the quality of the surrounding population, i.e. in the improvement of non-formal education of the population capable of supporting ecotourism; improvement of material and non-material quality of the ecotourism area; and maintenance of the natural resources of the ecotourism area.
Originality/value
This research tried to sort natural and cultural resources into two different things: natural resources were measured by specific activities, biodiversity protection, ecology maintenance and travel involvement in natural landscape and cultural resources were measured by ensuring cultural integrity, ensuring the social coherence of communities and maintaining cultural possibilities. Thus, the originality of this research lied in the use of two separate variables of natural resources and cultural resources in the performance of ecotourism. Separation of variables of ecotourism quality and performance of ecotourism became the second originality in this study. This study aimed to examine the effects of quality of local population (X1), natural resources (X2) and cultural resources (X3) on ecotourism quality (Y1), and its impact on Performance of Ecotourism (Y2), comprehensively.
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Shorna R. Broussard and John C. Bliss
The purpose of this research is to determine institutional commitment to sustainability by examining Natural Resource Extension program inputs, activities, and participation.
Abstract
Purpose
The purpose of this research is to determine institutional commitment to sustainability by examining Natural Resource Extension program inputs, activities, and participation.
Design/methodology/approach
A document analysis of Natural Resource Extension planning and reporting documents was conducted to provide contextual and historical data for the study and 58 in‐depth interviews were conducted with Natural Resource Extension personnel in the Alabama Cooperative Extension System and the Oregon State University Extension Service.
Findings
This research moves beyond the familiar teaching and research functions of higher education institutions and focuses on Cooperative Extension, which is the outreach arm of universities. The paper discusses challenges and opportunities associated with implementing sustainability through these outreach education programs. In both Alabama and Oregon, the Agriculture, Home Economics, and 4‐H programs dominate human and economic resource investment in Cooperative Extension. Natural Resource Extension programs in Alabama and Oregon represents 6 and 14 percent, respectively, of all program expenditures in Cooperative Extension. Both states have educational programs that address sustainability of natural resources and those programs were interdisciplinary in nature. Little evidence is found extensive participation in Natural Resource Extension programs by environmental groups, minorities, and other non‐traditional clientele. Lastly, Oregon's political context was more conducive to broadening Natural Resource Extension program work in sustainability.
Practical implications
Educational institutions such as Natural Resource Extension programs at universities play a significant role in educating private landowners, the public, and professionals about various aspects of forestry and natural resources. Based on this study of Natural Resource Extension programs in Alabama and Oregon, the following are needed for extension to address natural resource sustainability through its educational programs: sufficient intellectual and financial commitment to sustainability, diverse and inclusive participation in programs, and collaborative interdisciplinary programming. The analysis presented here can aid other educators as they explore sustainability through educational programming.
Originality/value
Since, Natural Resource Extension programs address societal concerns through problem solving, grassroots education, and research and technology dissemination, they are poised to do work in the sustainability arena. No study to date has examined sustainability from the aspect of Natural Resource Extension educators in Oregon and Alabama. An understanding of current investment in sustainability through education is fundamental to building a strong Extension program in this area.
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Ronald U. Mendoza, Harold J. MacArthur and Anne Beline Ong Lopez
– This paper aims to provide an updated review of policy literature and evidence on the development implications of extractive industries.
Abstract
Purpose
This paper aims to provide an updated review of policy literature and evidence on the development implications of extractive industries.
Design/methodology/approach
It synthesizes the main lessons drawn from an extensive review of policy and academic literature on this topic. It outlines the risks attached to the natural resource curse as well as the associated solutions, as demonstrated by empirical evidence and policy experience.
Findings
Based on the authors’ review of case studies and multi-country empirical analyses, there is a mixed picture on the link between extractive industries and inclusive growth. The authors find that, on the one hand, significant risks are commonly associated with the natural resource curse faced by countries that wish to tap this wealth for development. On the other hand, the mixed results also suggest that the many challenges related to expanding extractive industries are not necessarily unavoidable.
Practical implications
For policymakers, the main message is that some countries that have taken important steps to improve the governance of their wealth as well as channel these toward productive investments – notably human capital – appear to have transformed the natural resource curse into a boon for development.
Originality/value
The main contribution of this paper is that it provides the most comprehensive review to date on this body of the policy and academic literature. It will serve as a guide for policymakers, civil society and other stakeholders working on issues linked to extractive industries.
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Ying Guo, Dongpo Xia, Binghua Sun, Xi Wang, Dao Zhang and Jinhua Li
Because natural resource utilization is a predictor of sustainable development, an evaluation of the efficiency of resource utilization is critical for assessing…
Abstract
Purpose
Because natural resource utilization is a predictor of sustainable development, an evaluation of the efficiency of resource utilization is critical for assessing developmental potentiality. The purpose of this paper is to apply three-dimensional (3D) ecological footprint theory to assess the effects of production and consumption on ecological systems in Hefei, China.
Design/methodology/approach
Using data for Hefei for the period 2005-2014, an ecological footprint model (EFM) was developed to calculate the area’s ecological footprint (EF), ecological carrying (EC) capacity and obtain two indices, namely, footprint depth and size. The relationship between economic development and natural resource utilization was subsequently evaluated based on the calculated ecological deficit and the EF demand per Renminbi 10,000 of gross domestic product (GDP).
Findings
Over the last decade, Hefei’s EF per capita evidenced a 9.87 percent growth rate, increasing from 1.16 hm2/person in 2005 to 2.70 hm2/person in 2014. EC capacity per capita increased from 0.21 hm2/person in 2005 to 0.36 hm2/person in 2014, evidencing a gradually increasing trend at an average annual growth rate of 6.24 percent. Thus, between 2005 and 2014, the ecological deficit increased annually by three times. The amplification of footprint depth significantly exceeded that of footprint size. Between 2005 and 2014, Hefei’s EF per capita Renminbi 10,000 of GDP decreased annually by 4.68 percent. Thus, energy consumption in Hefei exceeded the natural regeneration capacity of energy resources, with excessive development and resource utilization impacting on the regional ecological system.
Practical implications
The application of a 3D EFM sheds light on natural resource utilization within regional development. Moreover, footprint depth and size are significant predictors of the impacts of natural resource utilization. These findings will also benefit other countries or cities.
Originality/value
This is one of the first empirical studies to apply a 3D EFM to evaluate the relationship between natural resource utilization and economic development. Adopting a sustainable development framework, it provides insights into the effects of natural resource utilization in relation to the balance between the natural ecological system and economic development. This has far-reaching implications beyond Hefei and China.
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