Theoretical/Conceptual Framework of the Research Problem
2017
Supporting Problem Statement: Theoretical / Conceptual Framework
Introduction
Further effort is directed at the examination of additional literature which has been conducted into the topic and problem statement namely, the theory pertaining to business managers in Nigeria who lack understanding of the business development process needed for successful growth in the quarry mining industry in Akamkpa, cross river state of Nigeria. Furthermore, research is conducted to further understand the nature of this case study into mining and quarrying activities in the Akamkpa region in terms of its research approach, design and method. This expanded research investigates how the theory of comparative advantage impacts the problem statement and how this theory while offering ways to solving industrial issues in the Akamkpa region may also be imposed by limitations in its capacity to address all these issues.
Expanded Discussion on the Topic and Theoretical/Conceptual Framework
Schumacher (2013) and Broner, Bustos and Carvalho (2012) conceded that there are valid risks should the above noted theory be utilized as a means to solve all the problems such as posed by the mining and quarrying industries in the Akamkpa region. These risks pertain to the potential inability of trade, capital and labor, economies of scope, importation of external resources and immediate stakeholders located near this region to perform according to expectations when addressed by this theory and how economic benefits and competitive advantages can be realized (Morrow, 2010).
George, Akpan, George and Obot (2010) argued that there are unknowns posed by mining and quarrying as rock formations can be vulnerable to stressors and weak points such as natural cracks can develop into hazardous movement such as subsidence; such suggests that the theory of comparative advantage may be unable to facilitate and address natural unknowns as the theory is primary based on hypotheses based on known facts. This is because rock can be overburdened to natural movement and is therefore 100% of certainty in industrial mining and quarrying operations can be viewed as elastic in terms of accurate predictions of unknown risks (Ukpong, 2012).
A study conducted into quarrying operations in Palestine found that prior to the implementation of the theory of comparative advantage in which resource management driven economic efficiency and benefits is achieved, proactive measures should first be implemented (Sayara, Hamdan & Basheer-Salimia, 2016). Their findings concluded that the creation and development of a green belt of vegetation including the planting of pollutant-tolerant broad leaf trees was a viable means to address environmentally damaging dust which posed a risk factor within the quarrying and mining industries. Subsequent to this and other initial proactive prevention measures the theory of comparative advantage can be applied in this industry sector in order to create economic and social benefits (Sayara et al., 2016).
Van Beers (2006) suggested that the theory of comparative theory can be utilized to directly counter the economic effects of environmentally damaging industry; such effects in terms of adverse economic factors such as higher health care costs and maintenance of infrastructure. Due to the inevitable and perhaps unpreventable side effects of mining and quarrying operations Van Beers (2006) maintained that alongside these operations, environmentally friendly products can be produced and harnessed such as wood from forests, flowers and plants from vegetation, food from agriculture, and medicinal products from plants.
This researcher claimed that the theory of comparative advantage can be used to establish relationships between industries in which one type of industry which positively contributed to the environment counter-balanced the other more environmentally damaging industry (De Beers, 2006). Therefore, production and export of mining and quarrying products can be developed alongside forests, agriculture and flora all design as export products which served to enhance the quality of the environment (De Beers, 2006). In addition, the creation of this ‘counter-industry’ would provide additional employment and income for local communities in the Akamkpa region (De Beers, 2006).
These two different industries would serve to introduce a practical working model of the theory of comparative advantage, in terms of both economic and social sustainability (De Beers, 2006). Furthermore, scientific research conducted into the relationships between these two industries can be exported as a form of intellectual knowledge; thereby revenue based on specialized environment knowledge can be another form of comparative advantage (Christmann, 2000). Essentially, this theoretical strategy as proposed by De Beers (2006) can create a triple stream of revenue for the local and national economies. The researcher suggested that investment capital into a region of intense mining and quarrying activity could be subjected to legislation which required that the investment to be equally split into the production of products and services derived from both environmentally enhancing and damaging industries (De Beers, 2006).
Another perspective pertaining to investment into the region is that the mining and quarrying operations are reduced and replaced by above noted alternative production; such would mean that employment and economic revenue factors are maintained yet health care and infrastructure costs are reduced due to the attenuation of environmentally damaging industry (De Beers, 2006). Therefore, resources in terms of financial capital and human resources are not increased but merely allocated into both counter-balancing industries thereby achieving economies of scope; such a meaningful derivative of the theory of comparative advantage (De Beers, 2006).
An alternative to investment into stringent regulatory practices for the mining and quarrying industries which may reduce employment and raise production costs would be to implement the theoretical concept of reallocating some of the investment into an environmentally competing industry such as that proposed earlier (De Beers, 2006). Should the theory of comparative advantage be applied, valuable relationships can be formed by the counter-balancing of these two industries in the form of the impact of trade and investment into a quality environment, the impact of a quality environment on trade and investment, the impact of external trade and investment on environmentally orientated policy making and also the impact of such policies on trade and investment (De Beers, 2006).
Achmad (2014) expanded on the concept of industries which counter-balanced each other in terms of reduction in economic and social costs by claiming that according to existing international pollution laws the polluter pays for their contribution of pollutants into the environment. Therefore, the funds indicated by financial assessment of the economic, social and environmental damage derived from the mining and quarrying industries could be allocated directly at the proposed alternative industry which would serve to create economies of scope and utilize the theory of comparative advantage as a mechanism to enhance economic and social outcomes (Achmad, 2014).
Ming’ate and Mohamed (2016) and Quiroga Sterner and Persson (2009) argued that a lax regulatory stance allowed by some economies can reduce production and operational costs and facilitate comparative advantages thereby encouraging the practice of environmentally and socially damaging operations. The proposed earlier noted industry alternative could allow stringent regulations to be in place thereby safeguarding the health and welfare of local stakeholders while encouraging other revenue streams which required less regulatory oversight (Quiroga et al., 2009).
Expanded Discussion on the Nature of the Study
Upon reflection, since the investigation into the issues outlined in the problem statement the emerging new knowledge offered earlier in this paper further confirms and justifies the utilization of the qualitative case study approach as a research method (Creswell, 2013). Issues pertaining to ethical and social concerns, health and environmental damage driven via external investment initiatives and existing weak local/national policies while not directly addressed by the theory of comparative advantage are met in part by the discussion in the earlier section. The case study research design allows analysis derived via multiple existing research studies to create alternatives to the problem rather than merely impose restrictions which reduce employment, incomes and revenues (Yin, 2009). Moreover, the research approach allows proactive alternatives to fill the gap found in the body of existing research and supply knowledge which possesses the capacity to potentially address and solve complex issues found within the Akamkpa region; such also serves to answer the research questions constructed to explore the phenomenon (Yin, 2009).
Conclusion
The earlier noted new qualitatively constructed insight serves to provide alternative vehicles which are proactive in design and rather than restrict existing industry practices in the region these alternatives can be used to balance the potential shortfalls which may arise should only the theory of comparative advantage be implemented as a measure to address the problem statement (Leedy & Ormrod, 2005). The addition of these proposed alternatives can create further understanding in terms of real-life phenomena and also justify the rationale behind this study (Leedy & Ormrod, 2005).
The combination of the theory of comparative advantage and the emerging expanded knowledge directed at the Akamkpa region can mean that this study is unique. This is because almost all existing studies conducted into this region concern a specific problem such as industry-driven dust pollution or environmental damage and do not qualitatively combine a case study into pollution, health and social issues with the introduction of alternative industries as an effective counter-balancing mechanism (Morrow, 2010). More research can be conducted into how the introduction of environmentally friendly production can be successfully implemented into the Akamkpa region by investigating how such alternative industries impact similar industrial environmentally risky situations or scenarios which are located globally (Van Beers, 2006).
References
Achmad, M. (2014). The WTO-EU Environmental Policies for the International Olive Oil Market and Trade Competitiveness: A Case Study for Syria. Chemnitz University Of Technology.
Broner, F., Bustos, P., & Carvalho, V. M. (2012). Sources of comparative advantage in polluting industries (No. w18337). National Bureau of Economic Research.
Christmann, P. (2000). Effects of “best practices” of environmental management on cost advantage: The role of complementary assets. Academy of Management journal, 43(4), 663-680.
Creswell, J. W. (2013) Research design: Qualitative, quantitative, and mixed methods approaches. Sage Publications.
George, N. J., Akpan, A. E., George, A. M., & Obot, I. B. (2010). Determination of elastic properties of the overburden materials in parts of Akamkpa, southeastern Nigeria using seismic refraction studies. Archives of Physics Research, 1(2), 58-71.
Leedy, P. D., & Ormrod, J. E. (2005). Practical research: Planning and design (8th ed.). Upper Saddle River, NJ: Prentice Hall.
Ming’ate, F. L., & Mohamed, Y. M. (2016). Impact of Stone Quarrying on the Environment and the Livelihood of Communities in Mandera County, Kenya.
Morrow, P. T. (2010). Ricardian-Heckscher-Ohlin Comparative Advantage: Theory and Evidence. Toronto: University of Toronto.
Quiroga, M., Sterner, T., & Persson, M. (2009). Have Countries with Lax Environmental Regulations a Comparative Advantage in Polluting Industries? Resources for the Future.
Sayara, T., Hamdan, Y., & Basheer-Salimia, R. (2016). Impact of Air Pollution from Quarrying and Stone Cutting Industries on Agriculture and Plant Biodiversity. Resources and Environment, 6(6), 122-126.
Schumacher, R. (2013). Deconstructing the Theory of Comparative Advantage. World Economic Review, 83-92.
Ukpong, E. C. (2012). Environmental Impact of Aggregate Mining of Crush Rock Industry in Akamkpa Local Government Area of Cross River State. Nigerian Journal of Technology, 31(2), 128-138.
Van Beers, C. (2006). International Trade, Environment, and Sustainable Development. In Economics of Sustainable Development: International Perspectives, ed. Mario Cogoy and Karl Steininger, Cheltenham, U.K. pp. 1-27.
Yin, R. K. (2009). Case study research: Design and methods. 4th edition. In United States: Library of Congress Cataloguing-in-Publication Data.
