Natural resources revenue management from global perspective: Critically important institutional factors

Abstract

Research background: Globally, many countries are dependent on natural resources, for this reason, their revenue management becomes an important aspect for their economies. It is necessary to understand the relations between institutional factors and natural resource revenue management from the global point of view. It means to identify which institutional aspects impact both positively and negatively the revenue management. Purpose of the article: The purpose of the article is to find out which conditions, or their combinations, regarding the institutional environment, lead to a certain level of revenue management. It means to comprehend which conditions, respectively their combinations, result in both higher and lower levels of revenue management and consequently influence its sustainability. Methods: Basically, the fuzzy-set qualitative comparative analysis is used to empirically examine the relations between institutional background and the revenue management in natural resource rich economies. The Resource Governance Index, as the global index measuring the quality of governance in individual countries is used as the input for the analysis. Findings & Value added: It was found that the individual institutional aspects have diverse effects on revenue management and its resilience. A few sufficient conditions were revealed, accountability, respectively absence of open data, rule of law, government effectiveness, in terms of higher, respectively lower level of revenue management. Political stability and absence of violence were identified as irrelevant conditions in terms of higher level of revenue management. Consistent pathways to reach higher and lower levels of revenue management were found.