LAPSE:2023.31503
Published Article
LAPSE:2023.31503
The Macroeconomic Results of Diligent Resource Revenues Management: The Norwegian Case
April 19, 2023
Many commodity-exporting countries saw their revenues plummet and experienced fiscal deficits during the pandemic. The economic rebound will restore resource exports/revenues and a new round of debate will be initiated on revenues utilization. Countries will decide either to internalize revenues or capitalize them with investments abroad. Our autoregressive distributed lag (ARDL) models provide evidence of the benefits Norway enjoys since it has not internalized revenues. The currency rate, long-term bond yields, and GDP growth are insulated from prices volatility. Furthermore, the country can absorb currency appreciations/devaluations and long-term credit rate hikes through government expenditure. However, monetary steering is favored in the long term (absorbs yield increases), while in the short run it can allow for speculative activities by credit investors. Countries should not internalize resource revenues to avoid experiencing decreased competitiveness and economic growth and increased credit rates. However, the temptation will be high enough since deficits and support packages cost a lot. This study also includes years of low prices. Thus, our research reveals the extent and limitations of diligent revenue management from a country considered as a role model.
Keywords
Dutch disease, hydrocarbons, macroeconomic effects, mitigation policies, Norway, oil, resource curse, resource management, resources, revenue management
Suggested Citation
Perifanis TA. The Macroeconomic Results of Diligent Resource Revenues Management: The Norwegian Case. (2023). LAPSE:2023.31503
Author Affiliations
Perifanis TA: Independent Researcher, 19004 Athens, Greece [ORCID]
Journal Name
Energies
Volume
15
Issue
4
First Page
1429
Year
2022
Publication Date
2022-02-16
Published Version
ISSN
1996-1073
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Original Submission
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PII: en15041429, Publication Type: Journal Article
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LAPSE:2023.31503
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doi:10.3390/en15041429
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Apr 19, 2023
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CC BY 4.0
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Apr 19, 2023
 
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