> Norway is probably the least good example example, due to the relative dominance of the oil & gas sector, I once found an article I haven't been able to find

> Norway is probably the least good example example, due to the relative dominance of the oil & gas sector, I once found an article I haven't been able to find ever since, but it's on a basic economic theory that high profitability in sector X makes sector Y uncompetitive. (read X as Oil and Y as anything else in this example). This is because the profits not only X push up wages in sector X. But also in Y, because the entire market must also compete with X in a bid to attract labour. This makes Y less competitive compared to other countries which don't have such a sector X. Of course in a world without friction, labour would move across borders to the first country's sector X and thereby push up wages in Y around the world. But labour mobility is obviously lower between countries than within countries, so other countries tend to be a little more insulated from this effect of profitable industries abroad. Does anyone remember the name for this economic theory? I feel this happened with Norway. In the 70s and 80s for example you saw it become less competitive and more rapidly deindustrialised. Still, you'd also think this would fuel a high-tech industry because you'd have to get into high-value added sectors to compete. Meanwhile Norway's second biggest export product is fish. Would be fun to have a Norwegian (economist) join us for some explanatory thoughts!