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Policy Environment and Small and Medium Enterprises Investment in the Ghanaian Oil and Gas Industry

Author

Listed:
  • Michael Karikari Appiah

    (School of Social and Economic Development, Universiti Malaysia Terengganu, Malaysia,)

  • Bayu Taufiq Possumah

    (School of Social and Economic Development, Universiti Malaysia Terengganu, Malaysia)

  • Nizam Ahmat

    (School of Social and Economic Development, Universiti Malaysia Terengganu, Malaysia)

  • Nur Azura Sanusi

    (School of Social and Economic Development,Universiti Malaysia Terengganu, Malaysia)

Abstract

Policy environment particularly local content legislatures in most emerging economies where oil and gas are produced have become major development agenda of host countries and stakeholders alike. Apparently, efforts are made to enact local content legislature as a means of optimizing oil and gas benefits. Per contra, mixed results had been ascertained with regards to outcome of these policies. This study was conducted to determine how dimensions of policy environment impact on SMEs investment in the Ghanaian Oil and Gas Sector. This study relied on primary data and structured questionnaire to elicit data from 497 Ghanaian SMEs across different industries. Using explanatory research design and binominal regression model we found that Skills and expertise development policy, local workforce education policy, employment policy and macro-economic environment policy significantly increase the odd of SMEs investment in the Ghanaian oil and gas sector. However, technology transfer, research and development policies exert insignificant influence on SMEs investment decisions. This study has implications on oil and gas policy reforms, investment decisions and future research. Particularly we recommend replication of this study within other emerging economies.

Suggested Citation

  • Michael Karikari Appiah & Bayu Taufiq Possumah & Nizam Ahmat & Nur Azura Sanusi, 2018. "Policy Environment and Small and Medium Enterprises Investment in the Ghanaian Oil and Gas Industry," International Journal of Energy Economics and Policy, Econjournals, vol. 8(4), pages 244-253.
    • Handle: RePEc:eco:journ2:2018-04-31
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    References listed on IDEAS

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    Cited by:

    1. Harmon Chaniago, 2021. "The Effect of Small Business Innovation and the Role of Government on the Environment: Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 198-205.

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    More about this item

    Keywords

    Ghanaian SMEs; Logit Model; Oil and Gas; Local Content Policy; Willingness to Invest;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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