The internal determinants of eight oil‐exporting countries’ resource‐based industry performance

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Abstract
The performance of the oil‐exporters’ resource‐based industry (RBI) was determined by sectoral mix, type of enterprise and macroeconomic policy. RBI strategies tended to be overambitious and overdependent on one sector, especially in the bigger countries. Wholly state‐owned enterprises (SOEs) experienced more problems than joint‐ventures. Macroeconomic mismanagement shrank domestic markets and denied competitive exchange rates for viable exports. The dismal Nigerian and Venezuelan RBI performances reflect weak macroeconomic policy and the dominance of SOE steel. Results are better in the soundly‐managed Asian economies which also benefited from greater use of joint‐ventures with multinational corporations. The anomaly of Saudi Arabia's initial under‐performance reflects strategy flaws.