IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v33y2008i4p196-202.html
   My bibliography  Save this article

The supply behaviour of state mining enterprises: A case study of the Jordanian phosphate industry

Author

Listed:
  • Rami, Alrawashdeh O.

Abstract

An important feature of export-oriented production in mineral-rich developing countries for almost three decades after 1960 was the growth of state-owned enterprises. For the phosphate industry, this was reflected in the expansion of companies such as Office Cherifienne des Phosphate (OCP) in Morocco and the Jordan Phosphate Mines Company (JPMC). There was a strategic importance of the industry for these nations and the large capital outlays necessary for phosphate and fertilizer production expansion often required considerable government assistance because of the perceived high risks of private investment in the industry. An associated issue with state-owned mining companies in developing nations during this time was their operation to facilitate overall government policy. Governments often required these public enterprises to increase production in times of lower world prices to reduce pressures on a balance of current account deficit. The empirical analysis in this paper suggests that this occurred on several occasions in Jordan. Such behaviour by several major producers tends to bring distortion to the operation of the world market over an extended period. Debt service obligation has also been an important determinant of mineral exports for highly indebted mineral rich developing nations. This appears to have been the case in Jordan, where external debt obligations often created pressure on the JPMC to expand its exports in order to earn the hard currency required to service the debt.

Suggested Citation

  • Rami, Alrawashdeh O., 2008. "The supply behaviour of state mining enterprises: A case study of the Jordanian phosphate industry," Resources Policy, Elsevier, vol. 33(4), pages 196-202, December.
  • Handle: RePEc:eee:jrpoli:v:33:y:2008:i:4:p:196-202
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301-4207(08)00029-9
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sen, Swapan, 1993. "The influence of external debt on Latin American metal and mineral exports," Resources Policy, Elsevier, vol. 19(3), pages 225-229, September.
    2. Markowski, Aleksander & Radetzki, Marian & Radetzki, Marian & Radetzki, Marian, 1987. "State ownership and the price sensitivity of supply : The case of the copper mining industry," Resources Policy, Elsevier, vol. 13(1), pages 19-34, March.
    3. Radetzki, Marian, 1989. "The role of state owned enterprises in the international metal mining industry," Resources Policy, Elsevier, vol. 15(1), pages 45-57, March.
    4. Dobozi, Istvan, 1993. "State enterprises, supply behaviour and market volatility : An empirical analysis of the world copper industry," Resources Policy, Elsevier, vol. 19(1), pages 40-50, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:33:y:2008:i:4:p:196-202. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.