INVESTMENTS AND VERTICAL INTEGRATION - CATALYST FOR DEVELOPMENT IN THE OIL INDUSTRY OF AN EMERGING MARKET: THE CASE OF REFINING IN KUWAIT

Muhammad Sani Salisu, Semen Y. Yagudin

Аннотация


This paper explores the possibilities of investment in the oil sector of a developing market and elaborated the advantage of vertical integration in a market where secondary raw materials are in shortage. I study a detailed of investment appeals and values that matters in investing. I argued that relevant business plans, based on vertical integration would create opportunity for FDI investment in Kuwait, where industrial development has always been faced by formidable obstacles including poor resources, which limits the manufacturing industries. I document that investors, are more selective in choosing company to invest in, mostly influenced by on values which are in no way in direct relationships with the financial performance. I hypothesize that this selection is caused by the modern market trend, where changes is the order of the day and competitiveness, R&D and excellent management strategy are important to adapt to these continuous changes. In line with this hypothesis, I document that to address the problem of labor force, necessary intellectual assets plans need to be researched; this I argue can help provided an avenue for expansion and greater productivity or profitability, thereby appealing for more FDI in Kuwait.

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Литература


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