IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v133y2019ics0301421519304902.html
   My bibliography  Save this article

Investments in the energy sector of Central Asia: Corruption risk and policy implications

Author

Listed:
  • Junxia, Liu

Abstract

The world is facing serious energy situation. The sense of urgency to guarantee energy security is constantly increasing for many countries. Exploiting foreign energy markets through international investment has become a significant strategy to resolve energy risks and optimize the distribution of energy sources. Central Asia, with the important geographical position and various abundant energy resources, has attracted the interest of the international community and become a popular destination of foreign investments. However, the corruption risk, inter alia, is a big concern for foreign investors, especially in the energy sector. The proportion of corruption in international investment arbitration cases with the five Central Asian countries as the Respondent is high up to 75% in the energy field. Choosing Central Asia as the investment destination in situations like these is a decision made after weighing both the opportunities and risks, with the purpose to establish resource-seeking investment. Against this backdrop, this paper aims to provide policy implications for government regulators, policy makers, and foreign investors. It is suggested to modify bilateral investment treaties, establish legal framework of Central Asian countries, adopt investment facilitation measures, strengthen self-discipline and self-protection of investors and strengthen investment guarantee system.

Suggested Citation

  • Junxia, Liu, 2019. "Investments in the energy sector of Central Asia: Corruption risk and policy implications," Energy Policy, Elsevier, vol. 133(C).
    • Handle: RePEc:eee:enepol:v:133:y:2019:i:c:s0301421519304902
    DOI: 10.1016/j.enpol.2019.110912
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421519304902
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2019.110912?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kaiser, Mark J. & Pulsipher, Allan G., 2007. "A review of the oil and gas sector in Kazakhstan," Energy Policy, Elsevier, vol. 35(2), pages 1300-1314, February.
    2. Al-Kasim, Farouk & Søreide, Tina & Williams, Aled, 2013. "Corruption and reduced oil production: An additional resource curse factor?," Energy Policy, Elsevier, vol. 54(C), pages 137-147.
    3. John H Dunning, 1998. "Location and the Multinational Enterprise: A Neglected Factor?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 45-66, March.
    4. Dorian, James P., 2006. "Central Asia: A major emerging energy player in the 21st century," Energy Policy, Elsevier, vol. 34(5), pages 544-555, March.
    5. Xihua, Zhang & Kaidong, Jing & Xu, Bin & Chang, Yen-Chiang & Hongzheng, Liu, 2018. "The standard essential patent ownership in the global energy interconnection collaborative innovation in China," Energy Policy, Elsevier, vol. 119(C), pages 149-153.
    6. Kalyuzhnova, Yelena & Nygaard, Christian, 2008. "State governance evolution in resource-rich transition economies: An application to Russia and Kazakhstan," Energy Policy, Elsevier, vol. 36(6), pages 1829-1842, June.
    7. Dorian, James P. & Abbasovich, Utkur Tojiev & Tonkopy, Mikhail S. & Jumabekovich, Obozov Alaibek & Daxiong, Qiu, 1999. "Energy in central Asia and northwest China: major trends and opportunities for regional cooperation," Energy Policy, Elsevier, vol. 27(5), pages 281-297, May.
    8. Karatayev, Marat & Clarke, Michèle L., 2016. "A review of current energy systems and green energy potential in Kazakhstan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 491-504.
    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. Andile Dube & Sylvester Senyo Horvey, 2023. "Institutional quality and renewable energy capital flows in Africa," Future Business Journal, Springer, vol. 9(1), pages 1-16, December.
    2. Sakiru Adebola Solarin, 2022. "Modelling Two Dimensions of Poverty in Selected Developing Countries: The Impact of Fossil Fuel Subsidies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(1), pages 357-379, February.
    3. Kedar Mehta & Mathias Ehrenwirth & Christoph Trinkl & Wilfried Zörner & Rick Greenough, 2021. "The Energy Situation in Central Asia: A Comprehensive Energy Review Focusing on Rural Areas," Energies, MDPI, vol. 14(10), pages 1-27, May.
    4. Rasoulinezhad, Ehsan & Sung, Jinsok & Talipova, Amina & Taghizadeh-Hesary, Farhad, 2022. "Analyzing energy trade policy in Central Asia using the intercountry trade force approach," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 441-454.
    5. Elena Shadrina, 2020. "Non-Hydropower Renewable Energy in Central Asia: Assessment of Deployment Status and Analysis of Underlying Factors," Energies, MDPI, vol. 13(11), pages 1-29, June.
    6. Ma, Qiang & Li, Sa & Aslam, Misbah & Ali, Naveed & Alamri, Ahmad Mohammed, 2023. "Extraction of natural resources and sustainable renewable energy: COP26 target in the context of financial inclusion," Resources Policy, Elsevier, vol. 82(C).
    7. Otrachshenko, Vladimir & Hartwell, Christopher A. & Popova, Olga, 2023. "Energy efficiency, market competition, and quality certification: Lessons from Central Asia," Energy Policy, Elsevier, vol. 177(C).
    8. Zhang, Dongyang & Kong, Qunxi, 2022. "Green energy transition and sustainable development of energy firms: An assessment of renewable energy policy," Energy Economics, Elsevier, vol. 111(C).
    9. Najib Rahman Sabory & Tomonobu Senjyu & Mir Sayed Shah Danish & Mikaeel Ahmadi & Hameedullah Zaheb & Mustafa Halim, 2021. "A Framework for Integration of Smart and Sustainable Energy Systems in Urban Planning Processes of Low-Income Developing Countries: Afghanistan Case," Sustainability, MDPI, vol. 13(15), pages 1-24, July.
    10. Khan, Mushtaq & Watkins, Mitchell & Zahan, Iffat, 2022. "De-risking private power in Bangladesh: How financing design can stop collusive contracting," Energy Policy, Elsevier, vol. 168(C).
    11. Wang, Qiang & Dong, Zequn & Li, Rongrong & Wang, Lili, 2022. "Renewable energy and economic growth: New insight from country risks," Energy, Elsevier, vol. 238(PC).

    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. Tavana, Madjid & Pirdashti, Mohsen & Kennedy, Dennis T. & Belaud, Jean-Pierre & Behzadian, Majid, 2012. "A hybrid Delphi-SWOT paradigm for oil and gas pipeline strategic planning in Caspian Sea basin," Energy Policy, Elsevier, vol. 40(C), pages 345-360.
    2. Hiroyuki Taguchi & Aktamov Asomiddin, 2022. "Energy-Use Inefficiency and Policy Governance in Central Asian Countries," Energies, MDPI, vol. 15(4), pages 1-15, February.
    3. Taguchi, Hiroyuki, 2022. "Energy use inefficiency and policy governance: the case of Central Asian countries," MPRA Paper 111932, University Library of Munich, Germany.
    4. Zijie Yang & Dong Huang & Yuqing Zhao & Wenqian Wang, 2022. "A Bibliometric Review of Energy Related International Investment Based on an Evolutionary Perspective," Energies, MDPI, vol. 15(9), pages 1-21, May.
    5. Rasoulinezhad, Ehsan & Sung, Jinsok & Talipova, Amina & Taghizadeh-Hesary, Farhad, 2022. "Analyzing energy trade policy in Central Asia using the intercountry trade force approach," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 441-454.
    6. Fei Wang & Changjian Wang & Jing Chen & Zeng Li & Ling Li, 2020. "Examining the determinants of energy-related carbon emissions in Central Asia: country-level LMDI and EKC analysis during different phases," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(8), pages 7743-7769, December.
    7. Assel K. Kozhakhmetova & Kenzhebek T. Gabdullin & Duissekul A. Kunanbayeva & Samal K. Tazhiyeva & Renata E. Kydaybergenova, 2019. "Green Energy Project`s Efficiency: A Cross-industry Evaluation," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 207-215.
    8. Gómez, Antonio & Dopazo, César & Fueyo, Norberto, 2015. "The future of energy in Uzbekistan," Energy, Elsevier, vol. 85(C), pages 329-338.
    9. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    10. Hu, Helen Wei & Cui, Lin, 2014. "Outward foreign direct investment of publicly listed firms from China: A corporate governance perspective," International Business Review, Elsevier, vol. 23(4), pages 750-760.
    11. Hayakawa, Kazunobu & Keola, Souknilanh & Silaphet, Korrakoun & Yamanouchi, Kenta, 2022. "Estimating the impacts of international bridges on foreign firm locations: a machine learning approach," IDE Discussion Papers 847, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    12. Sabiroglu, Ilkin M. & Bashirli, Samad, 2012. "Input–output analysis in an oil-rich economy: The case of Azerbaijan," Resources Policy, Elsevier, vol. 37(1), pages 73-80.
    13. Clegg, Jeremy & Lin, Hsin Mei & Voss, Hinrich & Yen, I-Fan & Shih, Yi Tien, 2016. "The OFDI patterns and firm performance of Chinese firms: The moderating effects of multinationality strategy and external factors," International Business Review, Elsevier, vol. 25(4), pages 971-985.
    14. Karatayev, Marat & Clarke, Michèle L., 2016. "A review of current energy systems and green energy potential in Kazakhstan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 491-504.
    15. Lurdes Martins & Jorge Cerdeira & Aurora A.C. Teixeira, 2020. "Does corruption boost or harm firms’ performance in developing and emerging economies? A firm‐level study," The World Economy, Wiley Blackwell, vol. 43(8), pages 2119-2152, August.
    16. Elizabeth L. Rose & Kiyohiko Ito, 2009. "Past Interactions and New Foreign Direct Investment Location Decisions," Management International Review, Springer, vol. 49(5), pages 641-669, October.
    17. Clampit, Jack & Gaffney, Nolan & Fabian, Frances & Stafford, Thomas, 2023. "Institutional misalignment and escape-based FDI: A prospect theory lens," International Business Review, Elsevier, vol. 32(3).
    18. Czesława Pilarska, 2018. "Efekty zewnętrzne bezpośrednich inwestycji zagranicznych z perspektywy kraju goszczącego," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 4, pages 93-124.
    19. Reinhold Decker & Xuemin Zhao, 2004. "SMEs' Choice of Foreign Market Entry Mode: A Normative Approach," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 3(3), pages 181-200, December.
    20. Zhao, Qianyu & Xu, Hang & Wall, Ronald S & Stavropoulos, Spyridon, 2017. "Building a bridge between port and city: Improving the urban competitiveness of port cities," Journal of Transport Geography, Elsevier, vol. 59(C), pages 120-133.

    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:eee:enepol:v:133:y:2019:i:c:s0301421519304902. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    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.