Does oil price really matter for the wage arrears in Russia?
Ran Tao and
Energy, 2020, vol. 208, issue C
This paper employs bootstrap full- and sub-sample rolling-window Granger causality tests to explore the time-varying interaction between oil price and wage arrears in Russia. The empirical results reveal that the decline in oil price leads wage arrears to increase, which indicates that there is an oil curse in Russia, as high wage arrears caused by low oil price may hinder the healthy development. Also, the rise in oil price causes wage arrears to decrease, and then the economic and social progress in Russia can be promoted. These results are supported by the Dutch-disease endogenous growth model, which highlights that oil price negatively affects wage arrears. In turn, there is a negative influence from wage arrears to oil price, which points out that the macroeconomic situation in Russia plays an important role in reflecting the changes of oil system. In the situation of international oil market uncertainty and the high dependence on the resources in Russia, investors can benefit from the above conclusions to diversify the investment risks. Also, it can provide implications for enterprises and governments to prevent potential wage arrears and improve the public confidence, as well as turn the resource curse into bonanza.
Keywords: Causality; Oil price; Russian wage arrears; Time-varying (search for similar items in EconPapers)
JEL-codes: C32 E24 Q43 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:208:y:2020:i:c:s0360544220314572
Access Statistics for this article
Energy is currently edited by Henrik Lund and Mark J. Kaiser
More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().