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Recycling petrodollars

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Author Info
Matthew Higgins
Thomas Klitgaard
Robert Lerman

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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.

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Publisher Info
Article provided by Federal Reserve Bank of New York in its journal Current Issues in Economics and Finance.

Volume (Year): (2006)
Issue (Month): Dec ()
Pages:
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Handle: RePEc:fip:fednci:y:2006:i:dec:n:v.12no.9

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Related research
Keywords: Petroleum industry and trade Investments Foreign

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This page was last updated on 2008-7-28.


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