ORIGINAL PAPER
The path dependence and adjustment strategy of the pricing power of dominant mineral resources: based on the perspective of law and economics
1
School of Law, Hunan University of Technology and Business，
2
School of Information Management, Jiangxi University of Finance and Economics
Submission date: 2024-01-05
Final revision date: 2024-05-26
Acceptance date: 2024-05-26
Publication date: 2024-09-11
Gospodarka Surowcami Mineralnymi – Mineral Resources Management 2024;40(3):87-111
KEYWORDS
TOPICS
Scientific background of mineral resource managementRational and efficient development and utilization of mineral resourcesMineral policy
ABSTRACT
This paper systematically analyzes the relevant influencing factors of the pricing power of advantageous mineral resources from the perspective of law and economics. It discusses the key factors that affect the pricing power of advantageous mineral resources in China from both macro and micro perspectives. And empirical analysis was conducted based on the structural equation model, using China’s lithium resources as an example to analyze the lithium related market data from 2012 to 2022 for the period of 10 years. The empirical results showed that policy support level PSI, gross domestic product GDP, international market share IMS, and supply and demand relationship index SDRI are key factors that affect the pricing power of advantageous mineral resources at the macro level, and have a significant impact on them, And it presents a positive impact. The supply and demand relationship SDRI, resource quality index RQI, mining cost index MCI, and market competition level MCL index are key factors that affect the pricing power of advantageous mineral resources at the micro level, and have a significant and positive impact on them. Moreover, macro influencing factors are greater than micro factors, which interact with each other and achieve reasonable development and utilization of resources through policy regulation, market mechanisms, and technological innovation, thereby affecting the pricing power of mineral resources. Therefore, in actual regulation, it is necessary to comprehensively consider multiple factors, adopt various means and strategies to improve the pricing power of mineral resources, ensure the sustainable development of resources and the sustained growth of the social economy.
ACKNOWLEDGEMENTS
This work was supported by the Hunan Provincial Social Science Foundation Youth Project „Research on Important Legal Issues of Machine-Generated Data under the Background of the Civil Code” No. 21YBQ070.
METADATA IN OTHER LANGUAGES:
Polish
Ścieżka zależności i strategia dostosowania siły cenowej dominujących surowców mineralnych – na podstawie perspektywy prawnej i ekonomii
wycena zasobów, siła cenowa, użyteczne surowce mineralne, PKB, równanie strukturalne
W artykule systematycznie analizowano istotne czynniki wpływające na siłę cenową użytecznych surowców mineralnych z punktu widzenia prawa i ekonomii. Omówiono w nim kluczowe czynniki wpływające na siłę cenową użytecznych surowców mineralnych w Chinach, zarówno z perspektywy makro, jak i mikro. Analizę empiryczną przeprowadzono w oparciu o model równań strukturalnych, wykorzystując chińskie zasoby litu jako przykład do analizy danych rynkowych związanych z litem w latach 2012–2022 przez okres 10 lat. Wyniki empiryczne wykazały, że poziom wsparcia politycznego PSI, produkt krajowy brutto PKB, udział w rynku międzynarodowym IMS oraz wskaźnik relacji podaży i popytu SDRI to kluczowe czynniki wpływające na siłę cenową użytecznych surowców mineralnych na poziomie makro i mają na nie znaczący pozytywny wpływ. Relacja podaży i popytu SDRI, wskaźnik jakości zasobów RQI, wskaźnik kosztów wydobycia MCI i wskaźnik poziomu konkurencji rynkowej MCL są kluczowymi czynnikami, które wpływają na siłę cenową użytecznych surowców mineralnych na poziomie mikro i mają na nie znaczący i pozytywny wpływ. Co więcej, czynniki makro mają większy wpływ niż czynniki mikro, które oddziałują na siebie nawzajem i osiągają rozsądny rozwój i wykorzystanie zasobów poprzez regulacje polityczne, mechanizmy rynkowe i innowacje technologiczne, wpływając w ten sposób na siłę cenową surowców mineralnych. W związku z tym w rzeczywistej regulacji konieczne jest kompleksowe uwzględnienie wielu czynników, przyjęcie różnych środków i strategii w celu poprawy siły cenowej surowców mineralnych, zapewnienia zrównoważonego ich pozyskania i trwałego wzrostu gospodarki społecznej.
REFERENCES (28)
1.
Acemoglu et al. 2005– Acemoglu, D., Johnson, S. and Robinson, J.A. 2005. Chapter 6 Institutions as a Fundamental Cause of Long-Run Growth. Handbook of Economic Growth 1, pp. 385–472, DOI: 10.1016/S1574-0684(05)01006-3.
2.
Alchian, A.A. and Demsetz, H. 1972. Production, Information Costs, and Economic Organization. American Economic Review 62(5), pp. 777–795.
3.
Besley, T. and Burgess, R. 2004. Can labor regulation hinder economic performance? Evidence from India. The Quarterly journal of economics 119(1), pp. 91–134, DOI: 10.1162/003355304772839533.
4.
Chase, C.C. 2022. Sweetness by the pound: Sugar and currency correlations in pre-Brexit UK prices. Borsa Istanbul Review 22(2), pp. 400–408, DOI: 10.1016/j.bir.2021.06.007.
5.
Chen, X. and Wu, C. 2022. Retail investor attention and information asymmetry: Evidence from China. Pacific Basin Finance Journal 75(5), DOI: 10.1016/j.pacfin.2022.101847.
6.
Dosi et al. 2019 – Dosi, G. Marengo, L. and Nuvolari, A. 2019. Institutions and economic change: some notes on self-organization, power and learning in human organizations. Eurasian Business Review 10(2), pp. 1–22, DOI: 10.1007/s40821-019-00132-x.
7.
Guo, Q. and Wu, Y. 2024. Assessing China’s rare earth supply security. Resources Policy 95, DOI: 10.1016/j.resourpol.2024.105177.
9.
Grossman, S.J. and Stiglitz, J.E. 1981. Information and competitive price systems. The American economic review 66(2), pp. 246–253, DOI: 10.7916/D8959TJ2.
10.
Harrod, R.F. 1939. An essay in dynamic theory. Economic Journal 49(193), pp. 14–33, DOI: 10.2307/2225181.
11.
Hofstede, G. 1980. Culture and Organizations. International Studies of Management & Organization 10(4), pp. 15–41, DOI: 10.1080/00208825.1980.11656300.
12.
Inglehart, R. and Welzel, C. 2005. Modernization, Cultural Change, and Democracy: The Human Development Sequence. Cambridge University Press.
13.
Joskow, P.L. 1975. Regulatory activities by government agencies. Massachusetts Institute of Technology (MIT). Department of Economics.
14.
Kick, T. 2022. Interest rate shocks, competition and bank liquidity creation. Financ Mark Portf Manag 36, pp. 409–441, DOI: 10.1007/s11408-022-00406-x.
16.
North, D.C. 1990. Institutions, Institutional Change and Economic Performance. Cambridge University Press 4, pp. 3–10, DOI: 10.1017/CBO9780511808678.003.
17.
North, P. and Jentsch, A. 2021. A circular economy approach to building heating: The role of exergy in policymaking. Energy Reports 7, pp. 334–342, DOI: 10.1016/j.egyr.2021.08.098.
18.
Radebe, N. and Chipangamate, N. 2024. Mining industry risks, and future critical minerals and metals supply chain resilience in emerging markets. Resources Policy 91(C), DOI: 10.1016/j.resourpol.2024.104887.
19.
Staritz et al. 2022 – Staritz, C., Tröster, B., Grumiller, J. and Maile, F. 2022. Price Setting Power in Global Value Cha ins: The Cases of Price Stabilization in the Cocoa Sectors in Côte d’Ivory and Ghana. The European journal of development research 23, pp. 840–868, DOI: 10.1057/s41287-022-00543-z.
20.
Shleifer, A. and Robert, W.V. 1997. A Survey of Corporate Governance. Journal of Finance 52(2), pp. 737–783, DOI: 10.2307/2329497.
21.
Tiede, L.B. 2018. The rule of law, institutions, and economic development. Handbook on the Rule of Law 5, pp. 405–418, DOI: 10.4337/9781786432445.00034.
22.
Triandis, H.C. 1995. A theoretical framework for the study of diversity. [In:] Diversity in organizations: New perspectives for a changing workplace 2, pp. 11–36, DOI: 10.4135/9781452243405.
23.
Williamson, O.E. 1995. Hierarchies, markets and power in the economy: An economic perspective. Industrialand Corporate Change 4, pp. 21–49, DOI: 10.1093/icc/4.1.21.
24.
Weldegiorgis, F.S. 2023. The interplay of mineral and energy security: A nexus approach to Africa’s economic diversification. Energy Research & Social Science 106(12), DOI: 10.1016/j.erss.2023.103336.
25.
Yang, M. 2018. The research on constructing balance sheet of natural resources in d city. University of South China.
26.
Yang et al. 2022 – Yang, X., Anser, M.K., Yusop, Z., Abbas, S., Khan, M.A. and Zaman, K. 2022. Volatility in mine ral resource pricing causes ecological footprints: A cloud on the horizon. Resources Policy 77(3), DOI: 10.1016/j.resourpol.2022.102673.
27.
Zhang, L. and Feng, A. 2017. Comparison and Suggestion on the Current Situation of Sketch Research in China and Abroad. China Land and Resources Economy 30(11), DOI: 10.3969/j.issn.1672-6995.2017.11.003.
28.
Zhong et al. 2014 – Zhong, M., Zeng, A., Huang, J. and Chen, J. 2014. The Analysis of Pricing Power of Respon dent Metal Mineral Resources under the Perspective of Intergenerational Equity and Social Preferences: An Analytical Framework Based on Cournot Equilibrium Model. Abstract and Applied Analysis 5, pp. 1–11, DOI: 10.1155/2014/252739.
| eISSN: | 2299-2324 |
| ISSN: | 0860-0953 |
We process personal data collected when visiting the website. The function of obtaining information about users and their behavior is carried out by voluntarily entered information in forms and saving cookies in end devices. Data, including cookies, are used to provide services, improve the user experience and to analyze the traffic in accordance with the Privacy policy. Data are also collected and processed by Google Analytics tool (more).
You can change cookies settings in your browser. Restricted use of cookies in the browser configuration may affect some functionalities of the website.
You can change cookies settings in your browser. Restricted use of cookies in the browser configuration may affect some functionalities of the website.
