Sectoral Structure Change Modeling of European Oil and Gas Producing Country’S Economy

Abstract

In this paper, we consider identifying features of sectoral structuring within the national economy that has definite foreign trade product specialization. Examination of the sector-specific division methodology enabled identification of its strong association with certain sector dominance in the economy. It is against this background that we offer an explanation for the delay in transferring from the post-Soviet to the applicable international classification of economic structure elements in Russia and Belarus. We perform analysis of the three-component P-S-T model (primary, secondary, tertiary sector) using statistical and econometric methods and define properties of the sectoral shares dynamics in national economies of oil and gas producing countries. Analysis of the Russian and Norwegian economies’ intersectoral changes suggests that it is necessary for the government to develop and implement selective structural policy to overcome the existing structural disproportions.

Keywords

• sector
• intersectoral shift
• minerals extraction
• deindustrialization
• tertiarization