Measuring the Capabilities of Firms to Deliver Local Content in Resource Rich Countries

Marcelo Neuman, Roger Tissot and Daniel Mabrey
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Daniel Mabrey: King Abdullah Petroleum Studies and Research Center

Discussion Papers from King Abdullah Petroleum Studies and Research Center

Abstract: The term ‘Local Content Policy’ is a catch-all for ensuring that resource owners capture more value from developments than the fiscal revenues alone. KAPSARC has explained the benefits of a dynamic perspective when evaluating firms’ capabilities – their entrepreneurial capacity – and proposed a tool for assessing firms in this paradigm. Here, we present an analysis based on the descriptive statistics gathered from applying the framework outlined in the previous two papers. Uganda is on the cusp of developing its oil industry following major discoveries around Lake Albert in the northwest region of the country. It has provided a useful case study for developing insights that can be more generally applied in resource rich economies seeking to maximize the value extracted from their endowments. KAPSARC conducted a study of Ugandan firms, their capabilities and potential to serve the oil and gas industry as suppliers.

Keywords: Absorptive capacity; Foreign Direct Investment; Gas Value Chain; Hydrocarbon Exploration; Local Content Pollicy; Manufacturing Sector; Natural Gas; Oil; Oil Investments; Oil Value Chain; Policy Development; Resource Development; Survey Data (search for similar items in EconPapers)
Pages: 64
Date: 2017-08-13
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