Table of Contents
Economics Research International
Volume 2015 (2015), Article ID 791805, 16 pages
Research Article

Econometric Modelling of the Variations of Norway’s Export Trade across Continents and over Time: The Two-Stage Non-Full Rank Hierarchical Linear Econometric Model Approach

Molde University College, Britveien 2, Kvam, 6402 Molde, Norway

Received 9 April 2015; Accepted 22 July 2015

Academic Editor: Udo Broll

Copyright © 2015 Yohannes Yebabe Tesfay and Per Bjarte Solibakke. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


This paper applies the two-stage hierarchical non-full rank linear econometric model to make a deep analysis based on revenue generated from key Norwegian export items over the world’s continents. The model’s ability to analyse the variation of Norway’s export trade gives us the following interesting details: (1) for each continent intra- and intervariation of export items, (2) access to deep knowledge about the characteristics of the Norway’s export items revenue, (3) quantifying the economic importance and sustainability of export items within continents; and finally (4) comparing a given export item economic importance across continents. The results suggest the following important policy implications for Norway. First, Europe is the most important trade partner for Norway. In fact, 81.5% of Norwegian export items are transported to Europe. Second, there is a structural shift in Norwegian exports from North and Central America to Asia and Oceania. Third, the new importance of Asia and Oceania is also emphasized by the 85% increase in export revenues over the period 1988–2012. The trade pattern has changed and trade policy must change accordingly. The analysis has shown that in 2012 there are two important export continents for Norway: Europe and Asia and Oceania.