scholarly journals Reverse Causality between Oil Policy and Fiscal Policy?: The Venezuelan Experience

2021 ◽  
Author(s):  
Osmel Manzano ◽  
José Luis Saboin
Keyword(s):  
Fiscal Policy ◽  
Oil Production ◽  
Future Generations ◽  
Reverse Causality ◽  
Accounting Model ◽  
Oil Policy ◽  
Oil Sector ◽  
The Government ◽  
Oil Wealth

This paper uses a model of intergenerational accounting to simulate the intergenerational distribution of oil wealth in Venezuela. Venezuelan oil production does not seem to follow an optimal extraction path. Nevertheless, this is true if we do not consider what the government does with the resources received from the oil sector. In this paper we explored the interaction of oil policy and fiscal policy using an intergeneration accounting model. We found that these interactions could explain certain outcomes. In particular, the model could explain why the sector was open for investment in 1991 and then “re-nationalized” in 2001. Results suggest that when fiscal policy could leave an important burden to future generations, voters seem to favor a more tax oriented oil policy, leaving the oil in the subsoil.

scholarly journals Reverse Causality between Oil Policy and Fiscal Policy? The Venezuelan Experience

Energies ◽  
2021 ◽  
Vol 14 (9) ◽  
pp. 2574
Author(s):  
Osmel Manzano ◽  
Jose Luis Saboin
Keyword(s):  
Fiscal Policy ◽  
Oil Production ◽  
Future Generations ◽  
Reverse Causality ◽  
Tax Revenues ◽  
Accounting Model ◽  
Oil Policy ◽  
Oil Sector ◽  
The Government ◽  
Oil Wealth

This paper uses a model of intergenerational accounting to simulate the intergenerational distribution of oil wealth in Venezuela. Venezuelan oil production does not seem to follow an optimal extraction path. Nevertheless, this is true if we do not consider what the government does with the resources received from the oil sector. We explored the interaction of oil policy and fiscal policy using such intergenerational accounting model. We argue that the way in which tax revenues (both, those coming from oil and those who do not) are used today can affect voters preferences on how they will be used tomorrow. These interactions could explain certain outcomes. In particular, the model could explain why the sector was open for investment in 1991 and then “re-nationalized” in 2001. Results suggest that when fiscal policy could leave an important burden to future generations, voters seem to favor a more tax-oriented oil policy, leaving the oil in the subsoil.

Fiscal Policy and Government Spending

2010 ◽  
Vol 214 ◽  
pp. F61-F66 ◽  
Author(s):  
Ray Barrell ◽  
Simon Kirby
Keyword(s):  
Fiscal Policy ◽  
Government Spending ◽  
Future Generations ◽  
Coalition Government ◽  
The Third ◽  
Long Run ◽  
Full Capacity ◽  
Government Deficit ◽  
The Government ◽  
The Cost

In June the Coalition Government produced a budget that aimed to reduce the government deficit quickly. The plan was based mainly on cuts in current expenditure and reductions in transfers to individuals. There are four possible reasons for reducing the deficit, and all have been used to justify the policy. The first reason might be that the cost of borrowing is currently too high, and the second could be that if deficits persist the markets could lose confidence and the cost of borrowing would rise. The third reason might be that we have to reduce the debt stock in order that we prepare for the next crisis, whilst the fourth, and perhaps most persuasive in the long run, is that it is unfair to borrow so much and therefore reduce the consumption of future generations. If either of the first two had merit there would be a case for swift consolidation, whilst if the third or fourth predominate, we should not be in any rush to act until output is nearer full capacity.

Libyan oil exports will remain hostage to conflict

2020 ◽  
Keyword(s):  
Oil Production ◽  
Military Leader ◽  
Content Type ◽  
International Support ◽  
Oil Exports ◽  
Oil Export ◽  
Budget Crisis ◽  
Oil Sector ◽  
The Government

Significance In January, eastern-based military leader Khalifa Haftar forced the closure of oil export terminals in the Gulf of Sirte, causing oil production and exports to plummet by 80-90%. The retreat of Haftar’s forces from western Libya as units supporting the Government of National Accord (GNA) advance towards Sirte raises questions about how control of the hydrocarbons sector will evolve. Impacts Some increases in oil exports are likely, but they may be short-lived. If oil exports do not rise this year, fears of a budget crisis will grow. The NOC is unlikely to support the GNA trying to use more oil sector promises to mobilise international support, for example from Turkey.

Iraqi Kurdistan could see oil and gas advances

2021 ◽  
Keyword(s):  
Oil And Gas ◽  
Oil Prices ◽  
Oil Production ◽  
Content Type ◽  
Oil Companies ◽  
Iraqi Kurdistan ◽  
Oil Sector ◽  
The Government ◽  
Slight Rise

Significance The oil sector managed a slight rise in oil production in 2020, despite the challenges of the pandemic and low oil prices. The KRG mostly managed to keep up payments to oil companies but did not assist Baghdad in making production cuts under the OPEC+ agreement. Impacts Combined new gas projects could meet domestic needs and potentially allow exports by the later 2020s. The government could resume payments of overdue amounts to international oil companies from this month. Talks with Baghdad will become more complex around planned elections in October 2021 and depending on legal developments with Turkey.

THE ROLE OF INTERNATIONAL OIL COMPANIES IN THE CREATION OF NEW CENTERS OF WORLD OIL PRODUCTION (ON THE EXAMPLE OF BRAZIL)

2020 ◽  
pp. 72-86
Author(s):  
Ivan A. Kopytin ◽  
◽  
Maksim V. Kramskoi ◽  
Keyword(s):  
Foreign Investment ◽  
Foreign Capital ◽  
Time Lag ◽  
Oil Production ◽  
Business Climate ◽  
Oil Companies ◽  
Brazilian Government ◽  
Oil Sector ◽  
The Government ◽  
Oil Company

Emergence of Brazil as a large oil exporter in the last years has become a significant development in the world oil market. The article focuses on the role played by foreign capital in development of the Brazil oil sector in the long historical perspective. The analysis led to the following conclusions. First, every time when Brazilian government was opened the oil industry for foreign investment, oil production went up with some time lag. Second, opening of the oil sector to foreign competition positively impacts the national oil company Petrobras, which plays a central role in the realization of the Brazilian government oil policy. Access to foreign investment and technology as well as competitive pressure increases the efficiency of the national oil company. Third, for decades terms of doing business for foreign companies in the Brazilian oil sector periodically changed depending on the situation in national economy. During periods of high economic dynamism Brazil introduced restrictions on activities of foreign oil companies, while with the deterioration of economic situation and aggravation in macroeconomic imbalances the government on the contrary opted for liberalization of foreign capital activity in oil production. It is concluded that in the last five – seven years the involvement of international vertically integrated oil companies in the Brazilian oil sector reached such a scale that any new attempt to complicate and impair business climate for foreign investors could result in not only economic but also political collusions.

Property bubble complicates Norway growth effort

2015 ◽  
Keyword(s):  
Emerging Market ◽  
Oil Price ◽  
Local Elections ◽  
Content Type ◽  
Formidable Challenge ◽  
Investment Returns ◽  
Oil Sector ◽  
The Government ◽  
Oil Wealth ◽  
The Impact

Subject The impact of the low international oil price on the Norwegian economy. Significance The oil sector accounts for almost 30% of state revenues and almost 22% of GDP. The current low oil price level thus represents a formidable challenge. Growth is slowing and unemployment rising: on September 3, Statistics Norway cut its forecasts for 2015 and 2016 average GDP growth to 1.3% and 1.8%, respectively. However, Norway transformed its oil wealth into financial wealth when the oil price was high and now funds government spending from the investment returns: years of budget surpluses and a deep sovereign wealth fund (SWF) provide Norway with significant fiscal leeway. Impacts Independent forecasts suggest growth will be weaker than official projections, at 1.3-1.6% in 2016-17. Unemployment could rise above Statistics Norway's expected 2016 peak of 4.6%, likely to around 5.0%. The slowdown appears to be damaging the government and boosting the opposition Labour Party before September 14 local elections. Regions most exposed to the oil industry will be worst affected, especially around Stavanger. The SWF plans to raise its emerging market exposure, but Asian holdings are only around 15%, offering some protection from China turmoil.

Libyan unity government should ease economic pressures

2021 ◽  
Keyword(s):  
Oil And Gas ◽  
Prime Minister ◽  
Oil Production ◽  
Armed Forces ◽  
Content Type ◽  
Oil Sector ◽  
The Government ◽  
Oil And Gas Sector

Significance The economy has faced major challenges recently: recurring disruptions to the oil and gas sector, state fragmentation and war between the government in Tripoli and the armed forces led by eastern commander Khalifa Haftar. Following agreements last year between Tripoli and Haftar to lift a nine-month oil blockade, oil production recovered sharply in the last quarter of 2020, reaching 1.28 million barrels per day (b/d) in December. Impacts The government may make ambitious new pledges on public and infrastructure spending. Major new projects will still be slow to materialise, though the prime minister is likely to initiate rebuilding projects. Plans for reconstruction projects will probably accelerate, but implementation will lag. The oil sector will manage infrastructure upgrades efficiently.

Book Reviews

2006 ◽  
Vol 56 (4) ◽  
pp. 455-468
Author(s):  
Zoltán Ádám ◽  
László Csaba ◽  
András Bakács ◽  
Zoltán Pogátsa
Keyword(s):  
Developing Countries ◽  
Fiscal Policy ◽  
Monetary Union ◽  
Economic And Monetary Union ◽  
European Studies ◽  
Eu Accession ◽  
East European ◽  
The World ◽  
The Government

István Csillag - Péter Mihályi: Kettős kötés: A stabilizáció és a reformok 18 hónapja [Double Bandage: The 18 Months of Stabilisation and Reforms] (Budapest: Globális Tudás Alapítvány, 2006, 144 pp.) Reviewed by Zoltán Ádám; Marco Buti - Daniele Franco: Fiscal Policy in Economic and Monetary Union. Theory, Evidence and Institutions (Cheltenham/UK - Northampton/MA/USA: Edward Elgar Publishing Co., 2005, 320 pp.) Reviewed by László Csaba; Piotr Jaworski - Tomasz Mickiewicz (eds): Polish EU Accession in Comparative Perspective: Macroeconomics, Finance and the Government (School of Slavonic and East European Studies, University College of London, 2006, 171 pp.) Reviewed by András Bakács; Is FDI Based R&D Really Growing in Developing Countries? The World Investment Report 2005. Reviewed by Zoltán Pogátsa

Social Dialogue Under Globalization in Nigeria: Does Democracy Add Value?

2007 ◽  
Vol 5 (1) ◽  
Author(s):  
Ifeanyi P. Onyeonoru ◽  
Kehinde Kester
Keyword(s):  
Industrial Relations ◽  
Work Place ◽  
Consensus Building ◽  
International Labour Organisation ◽  
Labour Relations ◽  
Social Dialogue ◽  
Modest Contribution ◽  
Social Partners ◽  
Oil Sector ◽  
The Government

Social dialogue as an aspect of the International Labour Organisation (ILO) is aimed at promoting industrial democracy by encouraging consensus building among social partners in the work place. The significance lies, among others, in minimising conflicts to enable harmonious industrial relations. This study utilized specific case illustrations to examine the inclination of the Nigerian government towards social dialogue in government-labour relations, with particular reference to the Obasanjo era 1999-2007— a period associated with the globalization of democracy. The cases included the minimum wage award 2000, University Autonomy Bill, the price deregulation of the downstream oil sector and the Trade Union Amendment Bill 2004. It was found that the government exhibited a penchant for authoritarianism in spite of the globalization of democracy. This was evident in the incapacity of the Obasanjo government to engage the social partners in social dialogue as indicated by the cases reviewed. The study, however, highlighted the modest contribution to social dialogue made by the wider democratic structure. It was concluded that the government had limited capacity for consensus building, accommodation of opposition and negotiated outcomes in government-labour relations

scholarly journals Determinants of Non-Linear Effects of Fiscal Policy on Output: The Case of Bulgaria

2009 ◽  
Vol 4 (1) ◽  
pp. 51-61 ◽  
Author(s):  
Vladimir Vladimirov ◽  
Maria Neycheva
Keyword(s):  
Fiscal Policy ◽  
Currency Board ◽  
Main Determinant ◽  
The Real ◽  
Real Gdp ◽  
Non Linear ◽  
Short Run ◽  
Linear Effects ◽  
Policy Impacts ◽  
The Government

Determinants of Non-Linear Effects of Fiscal Policy on Output: The Case of BulgariaThe paper illuminates the non-linear effects of the government budget on short-run economic activity. The study shows that in the Bulgarian economy under a Currency Board Arrangement the tax policy impacts the real growth in the standard Keynesian manner. On the other hand, the expenditure policy exhibits non-Keynesian behavior on the short-run output: cuts in government spending accelerate the real GDP growth. The main determinant of this outcome is the size of the discretionary budgetary changes. The results imply that the balanced budget rule improves the sustainability of public finances without assuring a growth-enhancing effect.

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