Al-mulali, Usama (2010): The Impact of Oil Prices on the Exchange Rate and Economic Growth in Norway.
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This study examines the impact of oil shocks on the real exchange rate and the gross domestic product in Norway using time series data from 1975 to 2008. The vector autoregressive has been implemented using the cointegration and the Granger causality test. The results of the study show that the increase in oil price is the reason behind Norway’s GDP increase and the increase of its competitiveness to trade by its real exchange rate depreciation. So it seems that oil price in this case is a blessing due to two reasons. First Norway uses the floating exchange rate regime which is a good shock absorber, increases the freedom of the monetary authority, and makes the adjustment smoother and less expensive. The second reason is that Norway has more flexible labor markets, improvements in monetary policy and smaller share of oil in production.
|Item Type:||MPRA Paper|
|Original Title:||The Impact of Oil Prices on the Exchange Rate and Economic Growth in Norway|
|English Title:||The Impact of Oil Prices on the Exchange Rate and Economic Growth in Norway|
|Keywords:||Oil Price, Real Exchange Rate,Economic Growth,VAR|
|Subjects:||E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E30 - General
F - International Economics > F3 - International Finance > F31 - Foreign Exchange
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy
|Depositing User:||Usama Al-mulali|
|Date Deposited:||31. Oct 2010 17:02|
|Last Modified:||12. Feb 2013 06:23|
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The Impact of Oil Prices on the Exchange Rate and Economic Growth in Norway. (deposited 18. Aug 2010 17:56)
The Impact of Oil Prices on the Exchange Rate and Economic Growth in Norway. (deposited 19. Aug 2010 00:53)
- The Impact of Oil Prices on the Exchange Rate and Economic Growth in Norway. (deposited 31. Oct 2010 17:02) [Currently Displayed]
- The Impact of Oil Prices on the Exchange Rate and Economic Growth in Norway. (deposited 19. Aug 2010 00:53)