22nd Annual NOITS Conference was held from 19 to 20 May 2022 in Stavanger, Norway. NES Professor Gerhard Toews presented the paper “I’ll pay you later: Relational Contracts in the Oil Industry” co-authored with Elena Paltseva (Stockholm School of Economics) and Marta Troya-Martinez (New Economic School and CEPR).
This paper about that contracts between governments and international firms are difficult to enforce, especially under weak institutions: governments are tempted to renegotiate tax payments after investments occurred. Using rich proprietary data on the oil and gas industry, authors shows that contracts between the oil majors and petro-rich economies with weak institutions are indeed delayed relative to countries with strong institutions.
The Nordic International Trade Seminars (NOITS) was established in Stockholm, March 1998, at the network’s first annual conference. NOITS aims to organize annual events with presentations by Nordic researchers and graduate students specializing in international economics. NOITS 2022 Conference received funding from Stavanger University Business School.