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.

Energy security as a source of international competitiveness in new EU member states

“…This functional form was selected as it closely resembles that presented originally by Balassa [1965], but (as found done in the existing literature) it has been modified within the scope of the present research to ensure applicability on an aggregate level of total exports and imports. Finally, this measure (as noticed by Nyga-Łukaszewska and Napiórkowski [2022]) meets the criteria of a measure of competitiveness established by Durand and Giorno [2023]. The present authors recognize that RCA was designed to focus on industries and is not without flaws [Misala, 2011;Laursen, 2015] and that it is just one aspect of international competitiveness, which is a multi-layered concept [Schwab and Zahidi, 2020].…”

“…By analogy, the present research ascertains whether Poland's international competitiveness follows the Ricardian or Heckscher-Ohlin hypothesis. A similar approach has also been used by Nyga-Łukaszewska and Napiórkowski [2022].…”

“…In the present study, the concept of international competitiveness is scrutinized through the perspectives of the WEF and the IMD, understanding the phenomenon as a set of institutions, and factors conditioning the prosperity of nations. A deeper discussion on international competitiveness is presented, e.g., by Misala [2011], but one that best applies to our approach can be found in the study of Nyga-Łukaszewska and Napiórkowski [2022]. There, the authors boil down the discussion on various definitions of international competitiveness to a simple relationship: international competitiveness comes from higher international comparative advantage that translates into higher exports.…”

“…Apart from Nyga-Łukaszewska and Chilimoniuk-Przeździecka [2017], such an approach has been rare. Additionally, this paper investigates the sample of the EU NMS while existing studies focused on specific countries like Azerbaijan [Falkowski, 2018], Germany [McKinsey, 2009;Bilan et al, 2017], the Netherlands [Berk et al, 2006], Pakistan [Nawaz and Alvi, 2018], Poland [Nyga-Łukaszewska, 2016], Serbia [Katic et al, 2016], or their groups: Europe in general [Zachmann and Cipollone, 2013], low-income countries [Scott, 2013], or the world's biggest energy consumers [Nyga-Łukaszewska and Chilimoniuk-Przeździecka, 2017] or energy exporters [Nyga-Łukaszewska and Napiórkowski, 2022]. The sample of countries used in the present study is to some extent similar to that used in the study of Głowacka [1996], who was analyzing the group of Central and Eastern European economies in transition.…”

“…Additionally, this research question has previously never been addressed within the theoretical framework of trade models applied to EU NMS. To some extent, a similar approach is provided in the study of Nyga-Łukaszewska and Napiórkowski [2022].…”