Local Content Policies and Their Influence on Mozambique's Oil and Gas Sector: A Theoretical Framework

Local Content Policies (LCPs) in Mozambique's oil and gas sector are designed to incorporate domestic content into foreign oil and gas projects. This theoretical framework explores how LCPs have influenced the industry, focusing on their effectiveness and potential improvements. This study employs qualitative analysis to interpret existing literature and policy documents related to LCPs in the Mozambican context. The theoretical framework underscores the importance of tailored policies that consider specific project directions and initial environmental contexts for maximising local content contributions in Mozambique's oil and gas sector. Future research should focus on developing more targeted LCPs, incorporating robust monitoring systems, and conducting case studies to understand their full impact. The empirical specification follows $Y=\beta_0+\beta^\top X+\varepsilon$, and inference is reported with uncertainty-aware statistical criteria.