Does acquisition of mineral resources by firms in resource-importing countries reduce resource prices?

Tamaki Morita, Keisaku Higashida, Yasuhiro Takarada, Shunsuke Managi

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

This study theoretically and empirically examines how resource prices are affected when firms in resource-importing countries acquire mineral resources. The study's theoretical examination considers a simple, two-period model that demonstrates how firms acquiring mineral resources may raise either present or future resource prices. This finding implies that resource consumption in either period may decline. Strategic behavior of resource-mining firms, demand for final goods, and extraction costs play key roles in this examination. Using a dynamic panel model with oil price data, the study's empirical portion estimates how acquiring resources affects the price of oil. Results demonstrate that prices in the present period rise, and prices in future periods decline.

Original languageEnglish
Pages (from-to)97-110
Number of pages14
JournalResources Policy
Volume58
DOIs
Publication statusPublished - Oct 1 2018

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mineral resource
firm
resource
resources
oil
theoretical study
examination
oil price
price
Resources
Importing
Mineral resources
present
cost
demand
costs

All Science Journal Classification (ASJC) codes

  • Sociology and Political Science
  • Economics and Econometrics
  • Management, Monitoring, Policy and Law
  • Law

Cite this

Does acquisition of mineral resources by firms in resource-importing countries reduce resource prices? / Morita, Tamaki; Higashida, Keisaku; Takarada, Yasuhiro; Managi, Shunsuke.

In: Resources Policy, Vol. 58, 01.10.2018, p. 97-110.

Research output: Contribution to journalArticle

Morita, Tamaki ; Higashida, Keisaku ; Takarada, Yasuhiro ; Managi, Shunsuke. / Does acquisition of mineral resources by firms in resource-importing countries reduce resource prices?. In: Resources Policy. 2018 ; Vol. 58. pp. 97-110.
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