The success of post-Communistic China and Russia in becoming major global economies have given some credibility to the argument that state capitalism may be a viable alternative to the free market model. This empirical study examines the impact of state capitalism and national oil companies (NOCs) on the trade balance of oil-producing countries. This paper explores the growth of state capitalism in the oil and gas industry, the effect of heavy subsidies and tax preferences by the government on this industry, and the impact of these trade barriers on the nation's economy and current account balance. The impact of energy subsidies, net oil imports and exports, as well as consumption and production levels are used to estimate the effect of these variables on government fiscal budget. Analyzing the feasibility and sustainability of energy subsidies in the long-run with respect to government-owned oil corporations and the projected increase in demand for petroleum from emerging markets in the future, some policy suggestions are made based on the empirical results.
|Presenters:||Rini Mukhopadhyay (University at Buffalo) -- firstname.lastname@example.org
Mei Ling Toh (University at Buffalo) --
|Time:||10:45 am (Session II)|