A model to assess the impact of employment policy and subsidized domestic fuel prices on national oil companies

Cabrales, Sergio; Bautista, Rafael; Benavides, Juan

doi:10.1016/j.eneco.2017.10.038

Cited by 10 publications

(9 citation statements)

References 17 publications

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“…Mining, construction, financial and insurance activities, public administration and military security, produced about 34% of GDP in 2018 (almost half of its growth, estimated at 2.3%). This specialization can be explained not only by the raw material structure of the economy, but also by the high share of state corporations, whose marginal income is usually subsidized by the state [15,16].…”

Section: Discussion Of Resultsmentioning

confidence: 99%

Priority Business Partner of Russia: China, Germany or USA

Смірнов¹,

Semenov²,

Kadyshev³

et al. 2020

Proceedings of the “New Silk Road: Business Cooperation and Prospective of Economic Development” (NSRBCPED 2019)

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The article reveals the relevance of the problems of maintaining the rate of economic growth of individual countries, creating favorable conditions for doing business in a period of decline of the dynamics of growth of world trade and strengthening of global competition. As a result of comparative analysis of business conditions in Russia relative to China, Germany and the United States, competitive advantages in property registration and insolvency recognition are determined. The difficulty in doing business in Russia, at least, is associated with the underdevelopment of institutions. The forecast values of economic growth dynamics showed the priorities of Russia, in comparison with China, Germany and the United Statesthe current account balance, military spending and gross savings. The research highlights the main competitive advantages of Russia relatively to China, Germany and the United States in the form of: ease of registration of property and recognition of insolvency of firms dominating of state corporations; purposefully oriented development of entrepreneurship in the form of an actor serving the economic interests of state corporations, political interests of the state, including the military-industrial complex, extractive industry, construction industry, financial and insurance sector.

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Section: Discussion Of Resultsmentioning

confidence: 99%

Priority Business Partner of Russia: China, Germany or USA

Смірнов¹,

Semenov²,

Kadyshev³

et al. 2020

Proceedings of the “New Silk Road: Business Cooperation and Prospective of Economic Development” (NSRBCPED 2019)

View full text Add to dashboard Cite

show abstract

“…Along with the maximization of wealth goal, public companies can have different social purposes, probably not considered a priority in private companies. National oil companies have objectives such as price subsidies and employment, constituting a trade-off between non-commercial objectives and value maximization for shareholders (Cabrales et al, 2017). Lee et al (1999) found that regulation changes in the United States have led to a small increase in productivity but have not substantially affected companies' profitability.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Nonetheless, there is no evidence on additional research about determining factors of profitability for oil and gas companies in the American Continent. Some specific works in Latin America refer to determinants of credit ratings for such companies (Bröker Bone, 2019) as well as some studies about the political economy of oil production (Manzano & Monaldi, 2008) and the financial performance of national oil companies (Cabrales et al, 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

The Profitability of Electricity, Oil, and Gas Utilities in America

Murillo

Ramos

2021

Rev. fac. cien. econ.

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Identifying the determining factors of utilities’ profitability is vital in making strategic deci- sions such as optimal resource allocation and business strategy orientation to increase the invested capital. We analyze information from private and public companies in the energy, gas, and oil sectors in Colombia and other American countries. We construct a panel data model from 2000 to 2010 and propose a method that identifies the determining factors of profitability for homogeneous groups of companies using cluster analysis. We use regression analysis to quantify those factors for each cluster. Fixed assets are essential determining factors of profitability; however, investment regulation may lead to significant losses in the realizable value of fixed assets and an increase in the companies’ capital costs. Debt and a munificent environment only affect medium-sized companies. We found some benefits for large companies derived from non-transparent institutional environments.

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“…In other words, the shape of the production function is the same for all companies, regardless of their ownership and business portfolio. This paper has discussed in the introduction that ownership and business portfolio may affect the shape of the production function, as different technologies are used in various segments and products, and the labor elasticity can be affected by ownership due to the overemployment phenomenon among NOCs, which is studied in Hartley and Medlock (2008) and Cabrales, Bautista, and Benavides (2017). In the methodology section, this paper also mathematically illustrates that the fixed production function not only overlooks the effects on input elasticities, but also evaluates the effects on productivity with bias.…”

Section: Literature Reviewmentioning

confidence: 99%

Effects of Ownership and Business Portfolio on Production in the Oil and Gas Industry

Gong¹

2020

The Energy Journal

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The Shale Revolution and the two oil crises have overwhelmingly reshaped the petroleum industry in the last decade. Heterogeneity across companies is also a big concern as many multi-product (oil and gas) and multi-segment (upstream and downstream) firms exist, both state-owned and privately-owned. Therefore, a varying coefficient model is introduced to capture the effects of time, ownership, and business portfolio on both productivity and input elasticities to closely observe the fundamental transition, which is further interpreted using decomposition equations. The shape of the production function is indeed firm-and time-variant, which confirms the transition of the industry and the necessity of using the varying coefficient model. The average productivity achieved tremendous growth after the 2007-2009 financial crisis but lost momentum following the 2014 price crash. Finally, privately-owned, gas production and downstream activities are more productive than state-owned, oil production and upstream activities, respectively. Some policy implications are also discussed.

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A model to assess the impact of employment policy and subsidized domestic fuel prices on national oil companies

Cited by 10 publications

References 17 publications

Priority Business Partner of Russia: China, Germany or USA

Priority Business Partner of Russia: China, Germany or USA

The Profitability of Electricity, Oil, and Gas Utilities in America

Effects of Ownership and Business Portfolio on Production in the Oil and Gas Industry

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