Interpretation of Results - Banking - Lecture Slides, Slides of Banking and Finance

Download Interpretation of Results - Banking - Lecture Slides and more Slides Banking and Finance in PDF only on Docsity! -8 -6 -4 -2 0 2 4 6 -4 -2 0 2 4 6 8 Actual less predicted FDI 1975-98 (% of GDP) G ro w th o f G N P pe r c ap ita 1 96 5- 98 , a dj us te d fo r i ni tia l i nc om e (% p er y ea r) Netherlands Norway Papua New Guinea Madagascar r = 0.62 Docsity.com -8 -6 -4 -2 0 2 4 6 -40 -20 0 20 40 Actual less predicted exports 1965-98 (% of GDP) G ro w th o f G N P pe r c ap ita 1 96 5- 98 , a dj us te d fo r i ni tia l i nc om e (% p er y ea r) Guinea Bissau Belgium Korea Malaysia r = 0.42 Docsity.com -6 -4 -2 0 2 4 6 0 10 20 30 40 50 60 70 Gini index of inequality G ro w th o f G N P pe r c ap ita 1 96 5- 98 , a dj us te d fo r i ni tia l i nc om e (% p er y ea r) Korea Norway China Sierra Leone r = -0.50 Brazil South Africa Docsity.com -6 -4 -2 0 2 4 6 0 10 20 30 40 50 60 70 Gini index of inequality G ro w th o f G N P pe r c ap ita 1 96 5- 98 , a dj us te d fo r i ni tia l i nc om e (% p er y ea r) Korea Norway China Sierra Leone r = -0.50 Brazil South Africa Docsity.com Interpretation of results Growth Inequality Growth Resources Inequality Resources + = Docsity.com Interpretation of results Growth Corruption Growth Resources Corruption Resources + = Docsity.com 0 1 2 3 4 5 6 7 8 9 0 20 40 60 Share of natural capital in national wealth 1994 (%) In de x of p ol iti ca l l ib er tie s 19 72 -9 0 r = 0.48 Docsity.com -8 -6 -4 -2 0 2 4 6 0 2 4 6 8 Index of political liberties 1972-90 G ro w th o f G N P pe r c ap ita 1 96 5- 98 , a dj us te d fo r i ni tia l i nc om e (% p er y ea r) r = -0.62 Docsity.com But, to repeat: Norway is different The problem is not the existence of natural wealth as such ... but rather the failure to avert the dangers that accompany the gifts of nature Norway is, so far, a success story Government takes in 80% of oil rent and invests it mostly in foreign securities No signs of damage to growth potential, at least not yet 5 Docsity.com The oil fund: A fair and efficient strategy The purpose of the oil fund To share the wealth fairly across generations To shield domestic economy from overheating and possible waste Fund will clearly become huge ... if Norwegians resist the temptation to use too much of the money to meet current needs Docsity.com Why Norway has succeeded where OPEC and others failed Long tradition of democracy and market economy in Norway since before the advent of oil Large-scale rent seeking was averted as oil was defined as a common- property resource from the beginning Adequate investment performance Excellent education record Docsity.com