Perspectives on the Relationship Between Standards and Linkages: Early Evidence from the Oil Industry

Aurora Margrethe Skarbøvig

Student thesis: Master thesis

Abstract

Extractive industries commonly impede developmental effects for countries dependent on inward Foreign Direct Investments. Extractivism elevates reliance on commodities exports, invokes exploitative trade relations, and re-allocates resources to developed countries. This research evaluates NORSOK standards effects on industry characteristics and commercial cohesion. Chiefly, it explores if Norwegian NORSOK standards catalyst linkages, spillovers, or upgrading for Nigerian petroleum industry suppliers. The research completes an evaluation of CAGE distances amid Norway and Nigeria, and basic institutional constraints, to assess linkage or spillover formation. The methodological approach uses abduction, a case-based research strategy, and systematic combining. Thus, a sequential case evaluation allowed for comparisons which generated foundations for generalizations. Key findings demonstrate that distance enhancing attributes exists amid Norway and Nigeria. The regulative-, normative-, and cognitive foundations in Nigeria have both positive and negative effects on linkage or spillover outcomes. The cases portrayed potential for direct linkage- or spillover generation, and several trajectories for social- or economic upgrading. Particularly, the NORSOK standards enabled economic process- and functional upgrading, along with a market-driven trajectory for social upgrading. Albeit, each case affirmatively allowed developmental- and dependent linkages, and spillovers. However, the utilization of NORSOK standards empower crowding-out or barriers to trade for Nigerian suppliers, which impedes chain participation. The research concludes that using NORSOK standards in Nigeria can indeed amplify linkages, spillover or upgrading likeliness. One recommended that operators, suppliers and institutions consider the effects of standards, to upsurge the benefits of standardization in developing countries.

EducationsMSc in Business, Language and Culture - Business and Development Studies, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2020
Number of pages161
SupervisorsPeter D. Ørberg Jensen