Effects of Oil Shocks on the Unemployment: GVAR Approach

Malek KhojastehNeghad and Raheleh Hosseini

Romanian Economic Journal, vol. 20, issue 65, 50-69

Abstract: Oil is not only one of the most significant and useful consumer goods but also is a remarkable material in energy production all around the world which has a lot of price fluctuation. oil shocks consider as a principal factor of many financial crises and have various effects on economy of countries. Hence, the assessment of price fluctuations on macroeconomic variables such as unemployment seems important. This paper survey the oil price inconstancy on unemployment in 31countries during the period from the second quarter of 1985 to the fourth quarter of 2009 through Global Vector Auto-Regression model. Results demonstrate except of the rest of W. Europe, there is a positive relationship between oil prices oscillation and unemployment. It should be noted in many area the feedback along with the lag that depends on the ratio of oil cost in national income, reliance level to imported oil, end-users ability to reduce their usage and substitute other sources, gas consumption quantity in economy, effect of higher prices on other energy sources, monetary policies adopt when face with oil price swaging and capability of goverments to apply the vary policies.

Keywords: Oil Shock; unemployment; GVAR Model (search for similar items in EconPapers)
JEL-codes: E24 J69 Q43 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.rejournal.eu/sites/rejournal.versatech. ... 0-19/3475/3malek.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rej:journl:v:20:y::i:65:p:50-69

Access Statistics for this article

Romanian Economic Journal is currently edited by Ioan Popa, PhD

More articles in Romanian Economic Journal from Department of International Business and Economics from the Academy of Economic Studies Bucharest Contact information at EDIRC.
Bibliographic data for series maintained by Radu Lupu ().