Arbeitspapier

Downstream activities: The possibilities and the realities

The paper discusses the practical possibilities of achieving increased downstream processing and the policies that are commonly used for this purpose. It reviews the reasons why forward vertical integration is not always an optimal choice for extractive industry companies. It finds little support for the argument that differences in market power dictate the geography of downstream processing. Tariffs on processed products may also play only a limited role. The degree of vertical integration varies and appears to be mainly driven by production economics. Market determined processing margins fluctuate, which raises the risks of investing in downstream processing capacity. Policies for downstream processing are discussed based on experiences in four countries: India, Indonesia, Zambia, and Tanzania. In most of these cases, a very limited amount of analysis appears to have been undertaken to design the policies. Results so far seem to indicate that a number of unintended consequences dominate the outcomes.

ISBN
978-92-9256-337-0
Sprache
Englisch

Erschienen in
Series: WIDER Working Paper ; No. 2017/113

Klassifikation
Wirtschaft
Thema
extractive industries
downstream processing
vertical integration
industrial policy

Ereignis
Geistige Schöpfung
(wer)
Östensson, Olle
Löf, Anton
Ereignis
Veröffentlichung
(wer)
The United Nations University World Institute for Development Economics Research (UNU-WIDER)
(wo)
Helsinki
(wann)
2017

DOI
doi:10.35188/UNU-WIDER/2017/337-0
Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Östensson, Olle
  • Löf, Anton
  • The United Nations University World Institute for Development Economics Research (UNU-WIDER)

Entstanden

  • 2017

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