Recycling petrodollars

Matthew Higgins, Thomas Klitgaard and Robert Lerman

Current Issues in Economics and Finance, 2006, vol. 12, issue Dec

Abstract: In recent years, oil-exporting countries have experienced windfall gains with the rise in the price of oil. A look at how oil exporters \\"recycle\\" their revenues reveals that roughly half of the petrodollar windfall has gone to purchase foreign goods, especially from Europe and China, while the remainder has been invested in foreign assets. Although it is difficult to determine where the funds are first invested, the evidence suggests that the bulk are ending up, directly or indirectly, in the United States.

Keywords: Petroleum industry and trade; Investments, Foreign (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
https://www.newyorkfed.org/medialibrary/media/rese ... t_issues/ci12-9.html (text/html)
https://www.newyorkfed.org/medialibrary/media/research/current_issues/ci12-9.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fednci:y:2006:i:dec:n:v.12no.9

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in Current Issues in Economics and Finance from Federal Reserve Bank of New York Contact information at EDIRC.
Bibliographic data for series maintained by Gabriella Bucciarelli ().