Abstract
Research background: Globally, many countries are dependent on natural resources, for this reason, their revenue management becomes an important aspect for their economies. It is necessary to understand the relations between institutional factors and natural resource revenue management from the global point of view. It means to identify which institutional aspects impact both positively and negatively the revenue management. Purpose of the article: The purpose of the article is to find out which conditions, or their combinations, regarding the institutional environment, lead to a certain level of revenue management. It means to comprehend which conditions, respectively their combinations, result in both higher and lower levels of revenue management and consequently influence its sustainability. Methods: Basically, the fuzzy-set qualitative comparative analysis is used to empirically examine the relations between institutional background and the revenue management in natural resource rich economies. The Resource Governance Index, as the global index measuring the quality of governance in individual countries is used as the input for the analysis. Findings & Value added: It was found that the individual institutional aspects have diverse effects on revenue management and its resilience. A few sufficient conditions were revealed, accountability, respectively absence of open data, rule of law, government effectiveness, in terms of higher, respectively lower level of revenue management. Political stability and absence of violence were identified as irrelevant conditions in terms of higher level of revenue management. Consistent pathways to reach higher and lower levels of revenue management were found.
Highlights
Alongside with proving the existence of natural resource curse in 1990s (Sachs and Warner, 1995), the fact that countries endowed by natural resources tend to perform in a worse way than the ones without the natural resource deposits, the topic of natural resource revenue management became widely discussed
It is important to understand the relations between institutional aspects and natural resource revenue management, it means to identify which institutional factors impact both positively and negatively the revenue management in countries rich in natural resources
This paper aims at this topic as its main goal is to find out which conditions, or their combinations, regarding institutional background, lead to a certain level of revenue management
Summary
Alongside with proving the existence of natural resource curse in 1990s (Sachs and Warner, 1995), the fact that countries endowed by natural resources tend to perform in a worse way than the ones without the natural resource deposits, the topic of natural resource revenue management became widely discussed. Many explanations were provided, including the theory of the Dutch disease (Torvik, 2001), volatility of commodity prices (Cavalcanti et al, 2012) or poor settings of tax framework Apart from these issues, the institutional environment was, and still is, often mentioned in association with natural resource revenue management in many prominent papers (Joshi, 2013, Gupta, 2008, Epremian et al.,2016). Various aspects of institutional background influencing the management of natural resources in a certain way are highlighted, such as armed conflicts (Collier and Hoeffler, 2002, Alao, 2007), corruption (Torvik, 2001, Sala-iMartin and Subramanian, 2003) or rule of law For this reason, it is important to understand the relations between institutional aspects and natural resource revenue management, it means to identify which institutional factors impact both positively and negatively the revenue management in countries rich in natural resources. It means to comprehend which conditions, or their combinations, result in higher and lower levels of resource revenue management and influence its quality
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