Is There a Connection Between the Movements in the Norwegian Exchange Rate and the Trade Patterns in Norway?

Abstract

This thesis analyzes if there is a connection between the Norwegian exchange rate and Norway's international trade, focusing on total exports and imports in three defined sectors: tradable goods, non-tradable goods and oil and gas. Examining data spanning from 1991 to 2022 from sources such as Statistic Norway and Norges Bank, regression analyses are conducted to assess the significance of variables such as interest rate, unemployment rate, oil price, GDP per capita, and CPI in explaining changes in import and export patterns. The findings suggest that the NOK does not have a significant effect on total imports and exports in any of the three sectors. Nevertheless, factors such as unemployment rate and GDP per capita have a greater impact than the NOK.