IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2018-04-31.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/6598/3846
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/6598/3846
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Farzana Sharmin & Mohammed Robayet Khan & Mohammed Robayet Khan, 2016. "A Causal Relationship between Energy Consumption, Energy Prices and Economic Growth in Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 477-494.
    2. Blasco, Sylvie & Pertold-Gebicka, Barbara, 2013. "Employment policies, hiring practices and firm performance," Labour Economics, Elsevier, vol. 25(C), pages 12-24.
    3. Yannis Georgellis & Howard J. Wall, 2006. "Entrepreneurship and the policy environment," Review, Federal Reserve Bank of St. Louis, vol. 88(Mar), pages 95-112.
    4. Yiming He & Shaohui Gao, 2017. "Gas Consumption and Metropolitan Economic Performance: Models and Empirical Studies from Guangzhou, China," International Journal of Energy Economics and Policy, Econjournals, vol. 7(2), pages 121-126.
    5. Silvana Tordo & Michael Warner & Osmel E. Manzano & Yahya Anouti, 2013. "Local Content in the Oil and Gas Sector," World Bank Publications - Books, The World Bank Group, number 15930.
    6. repec:ilo:ilowps:426523 is not listed on IDEAS
    7. Thomas M. FULLERTON & Carlos R. MORALES & Adam G. WALKE, 2014. "The Effects Of Education, Infrastructure, And Demographics On Regional Income Performance In Missouri," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 14(1), pages 5-22.
    8. David B. Audretsch & Erik E. Lehmann & Albert N. Link & Alexander Starnecker (ed.), 2012. "Technology Transfer in a Global Economy," International Studies in Entrepreneurship, Springer, edition 127, number 978-1-4614-6102-9, November.
    9. Dr. Washington O. Okeyo Ph.D & Dr. James Gathungu, Ph.D, & Prof. Peter K’Obonyo Ph.D, 2014. "The Effect of Business Development Services on Performance of Small and Medium Manufacturing Enterprises in Kenya," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(6), pages 12-26, June.
    10. Olabode A. Oyewunmi & Olusola J. Olujobi, 2016. "Transparency in Nigeria s Oil and Gas Industry: Is Policy Re-engineering the Way Out?," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 630-636.
    11. Aaron Yao Efui Ahali & Ishmael Ackah, 2015. "Are They Predisposed to the Resources Curse? Oil in Somalia," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 231-245.
    12. World Bank, 2002. "Cities on the Move : A World Bank Urban Transport Strategy Review," World Bank Publications - Books, The World Bank Group, number 15232.
    13. Delmas, Magali A. & Montes-Sancho, Maria J., 2011. "An Institutional Perspective on the Diffusion of International Management System Standards: The Case of the Environmental Management Standard ISO 14001," Business Ethics Quarterly, Cambridge University Press, vol. 21(1), pages 103-132, January.
    14. Christensen, J.D. & Goedhuys, M., 2004. "Impact of national policy and legal environments on employment growth and investment in micro and small enterprises," ILO Working Papers 994265233402676, International Labour Organization.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Erida Curraj, 2019. "Vintage Design Furniture in Albania, a New Retro Design Paradigm in the Post-Communist Era," European Journal of Engineering and Formal Sciences Articles, Revistia Research and Publishing, vol. 2, ejef_19.
    2. Jeffrey Thompson, 2012. "Raising Revenue from High-Income Households: Should States Continue to Place the Lowest Tax Rates on Those with the Highest Incomes?," Published Studies revenue_peri_march5, Political Economy Research Institute, University of Massachusetts at Amherst.
    3. Kutzbach, Mark J., 2009. "Motorization in developing countries: Causes, consequences, and effectiveness of policy options," Journal of Urban Economics, Elsevier, vol. 65(2), pages 154-166, March.
    4. Howard J. Wall, 2003. "Entrepreneurship and the deregulation of banking: how strong is the evidence?," Working Papers 2002-032, Federal Reserve Bank of St. Louis.
    5. Elkhan Richard Sadik-Zada & Wilhelm Loewenstein & Yadulla Hasanli, 2021. "Production linkages and dynamic fiscal employment effects of the extractive industries: input-output and nonlinear ARDL analyses of Azerbaijani economy," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(1), pages 3-18, April.
    6. George Halkos & Stylianos Nomikos & Antonis Skouloudis, 2021. "Revisiting ISO 14001 diffusion among national terrains: panel data evidence from OECD countries and the BRIICS," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(4), pages 781-803, October.
    7. Arena, Marika & Azzone, Giovanni & Dell’Agostino, Laura & Scotti, Francesco, 2022. "Precision policies and local content targets in resource-rich developing countries: The case of the oil and gas sector in Mozambique," Resources Policy, Elsevier, vol. 76(C).
    8. Amir Lebdioui & Keun Lee & Carlo Pietrobelli, 2021. "Local-foreign technology interface, resource-based development, and industrial policy: how Chile and Malaysia are escaping the middle-income trap," The Journal of Technology Transfer, Springer, vol. 46(3), pages 660-685, June.
    9. Juliane Peters & Ana Simaens, 2020. "Integrating Sustainability into Corporate Strategy: A Case Study of the Textile and Clothing Industry," Sustainability, MDPI, vol. 12(15), pages 1-35, July.
    10. Ritwika Sen, 2018. "Enhancing local content in Uganda’s oil and gas industry," WIDER Working Paper Series 110, World Institute for Development Economic Research (UNU-WIDER).
    11. Akyol, Ahmet & Athreya, Kartik, 2011. "Credit and self-employment," Journal of Economic Dynamics and Control, Elsevier, vol. 35(3), pages 363-385, March.
    12. Pisani, Niccolò & Kourula, Arno & Kolk, Ans & Meijer, Renske, 2017. "How global is international CSR research? Insights and recommendations from a systematic review," Journal of World Business, Elsevier, vol. 52(5), pages 591-614.
    13. Mia Ellis & Margaret McMillan, 2018. "Optimal local content for extractive industries: How can policies best create benefits for Tanzania?," WIDER Working Paper Series wp-2018-133, World Institute for Development Economic Research (UNU-WIDER).
    14. Mesquita Moreira, Mauricio & Frischtack, Claudio, 2014. "Where is Brazil going? Taking stock of recent trends in industrial and trade policies and the challenges ahead," MPRA Paper 59737, University Library of Munich, Germany.
    15. Mina Baliamoune-Lutz & Pierre Garello, 2014. "Tax structure and entrepreneurship," Small Business Economics, Springer, vol. 42(1), pages 165-190, January.
    16. Timothy Meyer, 2017. "Explaining energy disputes at the World Trade Organization," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 17(3), pages 391-410, June.
    17. Estrin, Saul & Korosteleva, Julia & Mickiewicz, Tomasz, 2013. "Which institutions encourage entrepreneurial growth aspirations?," Journal of Business Venturing, Elsevier, vol. 28(4), pages 564-580.
    18. Nora Hesse & Rolf Sternberg, 2017. "Alternative growth patterns of university spin-offs: why so many remain small?," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 953-984, September.
    19. Issabayev, Murat & Rizvanoghlu, Islam, 2019. "Optimal choice between local content requirement and fiscal policy in extractive industries: A theoretical analysis," Resources Policy, Elsevier, vol. 60(C), pages 1-8.
    20. Zauresh Atakhanova, 2021. "Support services in the extractive industries and the role of innovation," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(1), pages 141-150, April.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2018-04-31. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.