The Macroeconomic Results of Diligent Resource Revenues Management: The Norwegian Case

Many commodity-exporting countries saw their revenues plummet and experienced fiscal deficits during the pandemic. The economic rebound will restore resource exports/revenues a new round of debate be initiated on utilization. Countries decide either to internalize or capitalize them with investments abroad. Our autoregressive distributed lag (ARDL) models provide evidence benefits Norway enjoys since it has not internalized revenues. currency rate, long-term bond yields, GDP growth are insulated from prices volatility. Furthermore, country can absorb appreciations/devaluations credit rate hikes through government expenditure. However, monetary steering is favored in long term (absorbs yield increases), while short run allow for speculative activities by investors. should avoid experiencing decreased competitiveness increased rates. temptation high enough support packages cost lot. This study also includes years low prices. Thus, our research reveals extent limitations diligent revenue management considered as role model.