A Comparative Survey Data Analysis of Declining Oil Revenue Implications on the Economic Performance of Oil-Exporting Countries: Nigeria, Venezuela and Norway

Abstract

The global oil markets have witnessed different episodes of oil price fluctuations at different intervals. The effect of the fluctuations differs across nations and partly depending on the direction of the shocks. Declining oil revenue also has both direct and indirect impact on the economic performance of the countries where the heavy dependency on crude oil prevails.  This study is a comparative survey analysis of declining oil revenue implications on the economic performance of oil-exporting countries; the case of highly oil-dependent nations: Nigeria (West Africa), Venezuela (South America) and Norway (Europe).  Purposive sampling was used in selecting our samples, while the Survey Monkey cloud-based tool was employed to administer and collect the questionnaires from the targeted audience.  Survey data analysis was carried out using SPSS Version 25 and the Survey Monkey platform.  The results reveal that both increasing and decreasing oil price affect the oil revenues and the external reserves of Nigeria, Venezuela and Norway proportionately.  The outcome also shows that during periods of declining oil revenues, Nigeria and Venezuela attain their budgetary needs through borrowing and seigniorage.  On the other hand, Norway utilises its savings with the Sovereign Wealth Fund (SWF) and Pension Funds in financing its fiscal needs, thereby exonerating Norway from the resource curse syndrome.  It is recommended that these nations explore other sources of revenue through diversification and the development of other natural resources.   Nigeria and Venezuela should also restore security which would help in attracting further foreign investors.  They should also ensure effective management of government funds and pay attention to its human capital development.  However, an economic model is proposed to aid in closing the revenue gaps in these highly oil-dependent nations, given that the “power of oil” is gradually fizzling out as other alternative forms of energy that are assumed to be environmentally friendly are widely embraced.

Keywords:Oil Revenue, Dwindling Oil Price, Comparative Analysis, Survey Data, Economic Model, Oil-Exporters

DOI: 10.7176/JRDM/76-03

Publication date:June 30^th 2021