IDEAS home Printed from https://ideas.repec.org/a/gam/jlands/v11y2022i8p1287-d884847.html
   My bibliography  Save this article

Mining Investment Risk Assessment for Nations along the Belt and Road Initiative

Author

Listed:
  • Yujing Xiang

    (School of Resources and Safety Engineering, Central South University, Changsha 410083, China
    School of Business, Jishou University, Jishou 416000, China)

  • Qinli Zhang

    (School of Resources and Safety Engineering, Central South University, Changsha 410083, China)

  • Daolin Wang

    (School of Resources and Safety Engineering, Central South University, Changsha 410083, China)

  • Shihai Wu

    (School of Architecture, Changsha University of Science and Technology, Changsha 410083, China)

Abstract

As the Belt and Road Initiative (BRI) continues to advance, the proportion of China’s investment in mineral resources has increased yearly. However, the current research on mineral resources investment risk mainly focuses on specific resources or combinations of minerals. There is still a lack of risk assessment research regarding mineral resources as a whole, which leads to the lack of appropriate methods for decision makers to consider the overall investment risk. This research establishes a six-dimension (6-D) investment evaluation indicator system to comprehensively assess the mineral resources, including political, economic, social, resource potential, environmental risks, and China factors, and 50 countries were studied. Various mineral resources are integrated into the resource potential dimension for quantitative risk assessment calculations. The entropy–fuzzy method determines the indicator’s weights and calculates the risk assessment. The results indicate that resource potential is the main determinant of overseas mineral resources investment. The outcomes show that Saudi Arabia, the United Arab Emirates, Pakistan, India, Kazakhstan, Malaysia, Indonesia, and Russia are ideal for China’s mineral resources investment. The findings provide a theoretical and methodological basis for the further macroscopic study of mineral resources investment risk between countries.

Suggested Citation

  • Yujing Xiang & Qinli Zhang & Daolin Wang & Shihai Wu, 2022. "Mining Investment Risk Assessment for Nations along the Belt and Road Initiative," Land, MDPI, vol. 11(8), pages 1-20, August.
  • Handle: RePEc:gam:jlands:v:11:y:2022:i:8:p:1287-:d:884847
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-445X/11/8/1287/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2073-445X/11/8/1287/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stephen J Kobrin, 1979. "Political Risk: A Review and Reconsideration," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 10(1), pages 67-80, March.
    2. Hui Jin & Xinyi Qian & Tachia Chin & Hejie Zhang, 2020. "A Global Assessment of Sustainable Development Based on Modification of the Human Development Index via the Entropy Method," Sustainability, MDPI, vol. 12(8), pages 1-20, April.
    3. Yang, Ruicheng & Xing, Weize & Hou, Shuxia, 2020. "Evaluating the risk factors influencing foreign direct investment in Mongolia's mining sector: A complex network approach," Emerging Markets Review, Elsevier, vol. 43(C).
    4. Joel Deichmann & Socrates Karidis & Selin Sayek, 2003. "Foreign direct investment in Turkey: regional determinants," Applied Economics, Taylor & Francis Journals, vol. 35(16), pages 1767-1778.
    5. Naito, Koh & Myoi, Hajime & Otto, James & Smith, David & Kamitani, Masaharu, 1998. "Mineral projects in Asian countries: Geology, regulation, fiscal regimes and the environment," Resources Policy, Elsevier, vol. 24(2), pages 87-93, June.
    6. Saraswat, S.K. & Digalwar, Abhijeet K., 2021. "Evaluation of energy alternatives for sustainable development of energy sector in India: An integrated Shannon’s entropy fuzzy multi-criteria decision approach," Renewable Energy, Elsevier, vol. 171(C), pages 58-74.
    7. Dou, Shi-quan & Liu, Jiang-yi & Xiao, Jian-zhong & Pan, Wen, 2020. "Economic feasibility valuing of deep mineral resources based on risk analysis: Songtao manganese ore - China case study," Resources Policy, Elsevier, vol. 66(C).
    8. Zhou, Na & Wu, Qiaosheng & Hu, Xiangping & Xu, Deyi & Wang, Xiaolin, 2020. "Evaluation of Chinese natural gas investment along the Belt and Road Initiative using super slacks-based measurement of efficiency method," Resources Policy, Elsevier, vol. 67(C).
    9. Asiedu, Elizabeth, 2002. "On the Determinants of Foreign Direct Investment to Developing Countries: Is Africa Different?," World Development, Elsevier, vol. 30(1), pages 107-119, January.
    10. Li, Baihua & Li, Huajiao & Dong, Zhiliang & Lu, Yu & Liu, Nairong & Hao, Xiaoqing, 2021. "The global copper material trade network and risk evaluation: A industry chain perspective," Resources Policy, Elsevier, vol. 74(C).
    11. Fleury, Anne-Marie & Davies, Bejamin, 2012. "Sustainable supply chains—minerals and sustainable development, going beyond the mine," Resources Policy, Elsevier, vol. 37(2), pages 175-178.
    12. Root, Franklin R., 1968. "The expropriation experience of American companies : What happened to 38 companies," Business Horizons, Elsevier, vol. 11(2), pages 69-74, April.
    13. Wu, Yunna & Wang, Jing & Ji, Shaoyu & Song, Zixin, 2020. "Renewable energy investment risk assessment for nations along China’s Belt & Road Initiative: An ANP-cloud model method," Energy, Elsevier, vol. 190(C).
    14. Ling Du & Hasan Dinçer & İrfan Ersin & Serhat Yüksel, 2020. "IT2 Fuzzy-Based Multidimensional Evaluation of Coal Energy for Sustainable Economic Development," Energies, MDPI, vol. 13(10), pages 1-21, May.
    15. Aven, Terje, 2016. "Risk assessment and risk management: Review of recent advances on their foundation," European Journal of Operational Research, Elsevier, vol. 253(1), pages 1-13.
    16. Yuan, Jiahai & Li, Xinying & Xu, Chuanbo & Zhao, Changhong & Liu, Yuanxin, 2019. "Investment risk assessment of coal-fired power plants in countries along the Belt and Road initiative based on ANP-Entropy-TODIM method," Energy, Elsevier, vol. 176(C), pages 623-640.
    17. Francisco J. Buera & Joseph P. Kaboski & Robert M. Townsend, 2023. "From Micro to Macro Development," Journal of Economic Literature, American Economic Association, vol. 61(2), pages 471-503, June.
    18. Yu, Shiwei & Duan, Haoran & Cheng, Jinhua, 2021. "An evaluation of the supply risk for China's strategic metallic mineral resources," Resources Policy, Elsevier, vol. 70(C).
    19. Schmidt, Tobias S. & Sewerin, Sebastian, 2019. "Measuring the temporal dynamics of policy mixes – An empirical analysis of renewable energy policy mixes’ balance and design features in nine countries," Research Policy, Elsevier, vol. 48(10).
    20. W Chan Kim & Peter Hwang, 1992. "Global Strategy and Multinationals' Entry Mode Choice," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(1), pages 29-53, March.
    21. Zhao, Yabo & Liu, Xiaofeng & Wang, Shaojian & Ge, Yuejing, 2019. "Energy relations between China and the countries along the Belt and Road: An analysis of the distribution of energy resources and interdependence relationships," Renewable and Sustainable Energy Reviews, Elsevier, vol. 107(C), pages 133-144.
    22. Christian Bellak & Markus Leibrecht & Jože P. Damijan, 2009. "Infrastructure Endowment and Corporate Income Taxes as Determinants of Foreign Direct Investment in Central and Eastern European Countries," The World Economy, Wiley Blackwell, vol. 32(2), pages 267-290, February.
    23. Gatzert, Nadine & Vogl, Nikolai, 2016. "Evaluating investments in renewable energy under policy risks," Energy Policy, Elsevier, vol. 95(C), pages 238-252.
    24. repec:lic:licosd:19307 is not listed on IDEAS
    25. Huang, Jianbai & Liu, Jia & Zhang, Hongwei & Guo, Yaoqi, 2020. "Sustainable risk analysis of China's overseas investment in iron ore," Resources Policy, Elsevier, vol. 68(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yu, Donghui & Gu, Baihe & Zhu, Kaiwei & Yang, Jiawen & Sheng, Yuhui, 2024. "Risk analysis of China's renewable energy cooperation with belt and road economies," Energy, Elsevier, vol. 293(C).
    2. Xixi Du & Yi Qin & Chunbo Huang, 2022. "Status and Prospect of Ecological Environment in the Belt and Road Initiative Regions," IJERPH, MDPI, vol. 19(24), pages 1-20, December.
    3. Wenlong Yang & Wentian Shi & Dongcheng Chen, 2024. "Unveiling the nexus: exploring the influence of terrorism on energy trade in China and the Belt and Road countries," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-16, December.
    4. Elena N. Shaforostova & Olga V. Kosareva-Volod’ko & Olga V. Belyankina & Danila Y. Solovykh & Ekaterina S. Sazankova & Elena I. Sizova & Danila A. Adigamov, 2023. "A Tailing Dump as Industrial Deposit; Study of the Mineralogical Composition of Tailing Dump of the Southern Urals and the Possibility of Tailings Re-Development," Resources, MDPI, vol. 12(2), pages 1-13, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Huang, Jianbai & Liu, Jia & Zhang, Hongwei & Guo, Yaoqi, 2020. "Sustainable risk analysis of China's overseas investment in iron ore," Resources Policy, Elsevier, vol. 68(C).
    2. Wei Yang & Feihuang Xue & Jinfeng Shi & Yanmin Shao & Di Wang, 2021. "Factors Affecting the Trade Dependence Relationship of Asian Countries with China: Implications for China’s Belt and Road Initiative," Sustainability, MDPI, vol. 13(19), pages 1-23, September.
    3. Zhang, Mingming & Pang, Zhichao & Liu, Liyun & Yang, Zikun & Zhou, Dequn, 2024. "Risk assessment of China's overseas energy investments considering the response ability to major risk events: A case study of COVID-19," Energy, Elsevier, vol. 288(C).
    4. Zhou, Na & Wu, Qiaosheng & Hu, Xiangping & Xu, Deyi & Wang, Xiaolin, 2020. "Evaluation of Chinese natural gas investment along the Belt and Road Initiative using super slacks-based measurement of efficiency method," Resources Policy, Elsevier, vol. 67(C).
    5. Lili Kang & Fei Peng & Yu Zhu & An Pan, 2018. "Harmony in Diversity: Can the One Belt One Road Initiative Promote China’s Outward Foreign Direct Investment?," Sustainability, MDPI, vol. 10(9), pages 1-28, September.
    6. Yu, Donghui & Gu, Baihe & Zhu, Kaiwei & Yang, Jiawen & Sheng, Yuhui, 2024. "Risk analysis of China's renewable energy cooperation with belt and road economies," Energy, Elsevier, vol. 293(C).
    7. Du, Julan & Zhang, Yifei, 2018. "Does One Belt One Road initiative promote Chinese overseas direct investment?," China Economic Review, Elsevier, vol. 47(C), pages 189-205.
    8. Eric Evans Osei Opoku & Alex O. Acheampong & Janet Dzator & Nana Kwabena Kufuor, 2022. "Does environmental sustainability attract foreign investment? Evidence from developing countries," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3542-3573, November.
    9. John S. Hill & Myung-Su Chae & Jinseo Park, 2012. "The Effects of Geography and Infrastructure on Economic Development and International Business Involvement," Journal of Infrastructure Development, India Development Foundation, vol. 4(2), pages 91-113, December.
    10. Caroline T Witte & Martijn J Burger & Elena I Ianchovichina & Enrico Pennings, 2017. "Dodging bullets: The heterogeneous effect of political violence on greenfield FDI," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(7), pages 862-892, September.
    11. Ilbahar, Esra & Kahraman, Cengiz & Cebi, Selcuk, 2022. "Risk assessment of renewable energy investments: A modified failure mode and effect analysis based on prospect theory and intuitionistic fuzzy AHP," Energy, Elsevier, vol. 239(PA).
    12. Yang, Bo & Swe, Thidar & Chen, Yixuan & Zeng, Chunyuan & Shu, Hongchun & Li, Xin & Yu, Tao & Zhang, Xiaoshun & Sun, Liming, 2021. "Energy cooperation between Myanmar and China under One Belt One Road: Current state, challenges and perspectives," Energy, Elsevier, vol. 215(PB).
    13. Bartels, Frank L. & Napolitano, Francesco & Tissi, Nicola E., 2014. "FDI in Sub-Saharan Africa: A longitudinal perspective on location-specific factors (2003–2010)," International Business Review, Elsevier, vol. 23(3), pages 516-529.
    14. Luis Serrano-Gomez & Jose Ignacio Munoz-Hernandez, 2019. "Monte Carlo approach to fuzzy AHP risk analysis in renewable energy construction projects," PLOS ONE, Public Library of Science, vol. 14(6), pages 1-20, June.
    15. Ron Boschma & Simona Iammarino & Raffaele Paci & Jordy Suriñach & Andrea Ascani & Riccardo Crescenzi & Simona Iammarino, 2017. "The Geography of Foreign Investments in the EU Neighbourhood," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 108(1), pages 76-91, February.
    16. Vladimír Benáček & Helena Lenihan & Bernadette Andreosso-O'Callaghan & Eva Michalíková & Denis Kan, 2014. "Political Risk, Institutions and Foreign Direct Investment: How Do They Relate in Various European Countries?," The World Economy, Wiley Blackwell, vol. 37(5), pages 625-653, May.
    17. Muzurura, Joe, 2016. "Determinants of foreign direct investment (FDI) in Zimbabwe: What factors matter?," MPRA Paper 99873, University Library of Munich, Germany, revised 04 Jun 2016.
    18. Mehmet Demirbag & Ekrem Tatoglu & Keith W. Glaister, 2010. "Institutional and Transaction Cost Influences on Partnership Structure of Foreign Affiliates," Management International Review, Springer, vol. 50(6), pages 709-745, December.
    19. Tuğba Akın, 2019. "The Effects of Political Stability on Foreign Direct Investment in Fragile Five Countries," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 11(4), pages 237-255, December.
    20. Edward Nketiah-Amponsah & Bernard Sarpong, 2020. "Ease of Doing Business and Foreign Direct Investment: Case of Sub-Saharan Africa," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 26(3), pages 209-223, August.

    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:gam:jlands:v:11:y:2022:i:8:p:1287-:d:884847. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.