Does Energy Demand Security Affect International Competitiveness? Case of Selected Energy-Exporting OECD Countries

Abstract

International competitiveness and energy security are important topics on the energy policy agenda of energy-exporting and-importing nations. High dependence on energy rents challenges exporters’ economies and influences their ability to compete on international markets. The goal of this study is to investigate how energy demand security affects the international competitiveness of developed energy exporters. This research employs an econometric approach aimed at modeling the Heckscher–Ohlin and Ricardo international trade hypotheses. Introduced modifications allow for the measurement of international competitiveness on a country level, not per industry, and includes a series of energy variables in addition to relative resource endowment and productivity differentials. This study (based on Norway, the Netherlands, Canada and the USA over the period of 1997–2017) proves that energy security does not play a role in the shaping of international competitiveness of high-income energy-exporting countries.