Authors: Matthew Higgins, Thomas
Klitgaard, and Robert Lerman
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.