MITIGATION OF THE EFFECT OF THE PRICE OF OIL. NORWEGIAN EXPERIENCE AND ECUADORIAN PERSPECTIVE

Abstract

The price of oil has been and is one of the most discussed and analyzed points in Ecuador, Norway and the world since the second industrial revolution because of the cost-benefit to the detriment of the environment. Consequently, this research project is aimed at explaining the difference in development between Ecuador and Norway, analyzing socioeconomic and environmental situations for the realization of econometric models that mathematically explain the dependence and characterization of the economic structure of the two countries, in benefit of providing information to Ecuador based on the Norwegian experience. The fulfillment of the marked objectives was realized thanks to the free econometric software Gretl with simple MCO models, descriptive analysis of graphs and finally through 4 VAR models. Based on the results, it is established that Ecuador could not currently apply the Norwegian model, due to cultural and political reasons and because of its already high dependence on petroleum, verified through econometric models.