What Determines the Fuel Exports: The Case of Norway

Abstract

Energy today is a key factor in economic growth. The reason why energy is today an essential factor for the development of a country is its inelastic demand. Securing energy resources is a key component of many states' trade policy. Within this framework of energy security for many countries, Norway has a remarkable presence. The main reason is the rich mineral wealth that Norway possesses. But that's not the only reason. Many countries, although they have rich mineral resources, are nevertheless “captive” in the rich cradles of mineral resources without wishing to diversify their production (“Dutch Disease” - “The Curse of Resources”). These countries usually have the effect of revaluing their currency and linking it to the dominant world currency. Norway, because of the global energy market, must reform its energy policy in such a way that it can be competitive. This study will attempt to investigate those factors that determine energy exports. Having Norway as a case study, the present research effort will set a framework for the interpretation of energy exports. The methodology applied is multiple Regression Analysis - Ordinary Least Squares (OLS).