Hidden Bibliographic Details
| Other authors / contributors: | Geng, Nan, author, (IMF staff)
Ho, Giang, author, (IMF staff)
Turk Ariss, Rima, author, (IMF staff)
International Monetary Fund, publisher.
International Monetary Fund. European Department, sponsor.
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| ISBN: | 9781498345705
1498345700
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| Notes: | "July 2016."
"June 9, 2016; approved by the European Department; prepared by Nathaniel Arnold, Nan Geng, Giang Ho, and Rima Turk"--Page 2 of pdf.
Includes bibliographical references.
Description based on online resource; title from pdf title page (IMF.org website, viewed August 10, 2016).
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| Summary: | As offshore investment drops from its peak and oil prices retreat from their high in 2014, the Norwegian economy is going through a transition away from oil dependence. This chapter first takes a historical perspective, studying the implications of the oil boom of the 2000s on industry structure and economy-wide productivity. It then examines the progress with the ongoing transition thus far both in the real sector and the labor market, bearing in mind the short time span that has passed. Finally, policies that may be helpful in facilitating a smooth adjustment are discussed. -- As Norway undergoes a transition away from oil and gas, boosting external competitiveness and in particular productivity is crucial to create a dynamic non-oil tradable sector that could potentially replace oil and gas. Meanwhile, productivity growth in Norway has faltered for the past decade compared to peers, reflecting both cyclical and structural factors. This paper explores two possible explanations for the lagging productivity performance, namely product market regulation (PMR) and the low level of research and innovation. An extensive dataset of mainland Norwegian firms is used to empirically assess the potential productivity gains from product market reforms as well as increasing research and development (R&D) spending. -- The high and rising house prices and household debt in Norway pose important financial stability risks. To address these systemic risks, the authorities have implemented a number of macroprudential policy measures. This paper empirically assesses the effectiveness of the housing-related measures in the Norwegian context, controlling for other variables that affect house prices and mortgage credit growth. Additionally, a DSGE model is used to examine the potential impact of tightening certain policies.
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