Economic Diversification Potential in the Rentier States Towards for a Sustainable Development: A Theoretical Model
<div><p>This paper develops a theoretical model to analyze whether a rentier state can diversify its economy away from the rent revenue and hence sustain the economic development and preserve the status-quo. Considering the decarbonization process of the global economy and rapidly fall i...
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2019
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| _version_ | 1864513520301768704 |
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| author | Abdullah Kaya (44754) |
| author2 | Evren Tok (14779270) Muammer Koc (16078064) Toufic Mezher (1876552) I-Tsung Tsai (18174931) |
| author2_role | author author author author |
| author_facet | Abdullah Kaya (44754) Evren Tok (14779270) Muammer Koc (16078064) Toufic Mezher (1876552) I-Tsung Tsai (18174931) |
| author_role | author |
| dc.creator.none.fl_str_mv | Abdullah Kaya (44754) Evren Tok (14779270) Muammer Koc (16078064) Toufic Mezher (1876552) I-Tsung Tsai (18174931) |
| dc.date.none.fl_str_mv | 2019-02-11T03:00:00Z |
| dc.identifier.none.fl_str_mv | 10.3390/su11030911 |
| dc.relation.none.fl_str_mv | https://figshare.com/articles/journal_contribution/Economic_Diversification_Potential_in_the_Rentier_States_Towards_for_a_Sustainable_Development_A_Theoretical_Model/25428286 |
| dc.rights.none.fl_str_mv | CC BY 4.0 info:eu-repo/semantics/openAccess |
| dc.subject.none.fl_str_mv | Engineering Environmental engineering Human society Development studies Policy and administration rentier state economic diversification theoretical model |
| dc.title.none.fl_str_mv | Economic Diversification Potential in the Rentier States Towards for a Sustainable Development: A Theoretical Model |
| dc.type.none.fl_str_mv | Text Journal contribution info:eu-repo/semantics/publishedVersion text contribution to journal |
| description | <div><p>This paper develops a theoretical model to analyze whether a rentier state can diversify its economy away from the rent revenue and hence sustain the economic development and preserve the status-quo. Considering the decarbonization process of the global economy and rapidly fall in economic value of hydrocarbons in the face of the supply glut, rentier states depending on oil and gas revenues urgently need to diversify their economies to avoid social backlash and political upheaval. There are three intertwining factors that determine an effective economic diversification away from the rent revenue: The profitability of non-rentier sectors, the size of the domestic economy to induce a “Big Push” for industrialization to non-rentier sectors, and the level of economic inclusivity. For an optimal level of economic diversification in a rentier state: (1) Non-rentier sectors should be attractive to private agents without the entry barriers; (2) domestic economy should be large enough to induce investment into non-rentier sectors; (3) the ruler(s) should have sufficient tolerance (inclusivity) for private agents investing into non-rentier sectors. Our findings indicate that a rentier state can achieve an optimal level of economic diversification provided that the conditions above are met even without any political change.</p><p> </p></div><h2>Other Information</h2> <p> Published in: Sustainability<br> License: <a href="https://creativecommons.org/licenses/by/4.0/" target="_blank">https://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.3390/su11030911" target="_blank">https://dx.doi.org/10.3390/su11030911</a></p> |
| eu_rights_str_mv | openAccess |
| id | Manara2_c39ee5da1fe900c4d83a83451aaff82f |
| identifier_str_mv | 10.3390/su11030911 |
| network_acronym_str | Manara2 |
| network_name_str | Manara2 |
| oai_identifier_str | oai:figshare.com:article/25428286 |
| publishDate | 2019 |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
| repository_id_str | |
| rights_invalid_str_mv | CC BY 4.0 |
| spelling | Economic Diversification Potential in the Rentier States Towards for a Sustainable Development: A Theoretical ModelAbdullah Kaya (44754)Evren Tok (14779270)Muammer Koc (16078064)Toufic Mezher (1876552)I-Tsung Tsai (18174931)EngineeringEnvironmental engineeringHuman societyDevelopment studiesPolicy and administrationrentier stateeconomic diversificationtheoretical model<div><p>This paper develops a theoretical model to analyze whether a rentier state can diversify its economy away from the rent revenue and hence sustain the economic development and preserve the status-quo. Considering the decarbonization process of the global economy and rapidly fall in economic value of hydrocarbons in the face of the supply glut, rentier states depending on oil and gas revenues urgently need to diversify their economies to avoid social backlash and political upheaval. There are three intertwining factors that determine an effective economic diversification away from the rent revenue: The profitability of non-rentier sectors, the size of the domestic economy to induce a “Big Push” for industrialization to non-rentier sectors, and the level of economic inclusivity. For an optimal level of economic diversification in a rentier state: (1) Non-rentier sectors should be attractive to private agents without the entry barriers; (2) domestic economy should be large enough to induce investment into non-rentier sectors; (3) the ruler(s) should have sufficient tolerance (inclusivity) for private agents investing into non-rentier sectors. Our findings indicate that a rentier state can achieve an optimal level of economic diversification provided that the conditions above are met even without any political change.</p><p> </p></div><h2>Other Information</h2> <p> Published in: Sustainability<br> License: <a href="https://creativecommons.org/licenses/by/4.0/" target="_blank">https://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.3390/su11030911" target="_blank">https://dx.doi.org/10.3390/su11030911</a></p>2019-02-11T03:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.3390/su11030911https://figshare.com/articles/journal_contribution/Economic_Diversification_Potential_in_the_Rentier_States_Towards_for_a_Sustainable_Development_A_Theoretical_Model/25428286CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/254282862019-02-11T03:00:00Z |
| spellingShingle | Economic Diversification Potential in the Rentier States Towards for a Sustainable Development: A Theoretical Model Abdullah Kaya (44754) Engineering Environmental engineering Human society Development studies Policy and administration rentier state economic diversification theoretical model |
| status_str | publishedVersion |
| title | Economic Diversification Potential in the Rentier States Towards for a Sustainable Development: A Theoretical Model |
| title_full | Economic Diversification Potential in the Rentier States Towards for a Sustainable Development: A Theoretical Model |
| title_fullStr | Economic Diversification Potential in the Rentier States Towards for a Sustainable Development: A Theoretical Model |
| title_full_unstemmed | Economic Diversification Potential in the Rentier States Towards for a Sustainable Development: A Theoretical Model |
| title_short | Economic Diversification Potential in the Rentier States Towards for a Sustainable Development: A Theoretical Model |
| title_sort | Economic Diversification Potential in the Rentier States Towards for a Sustainable Development: A Theoretical Model |
| topic | Engineering Environmental engineering Human society Development studies Policy and administration rentier state economic diversification theoretical model |