Is The Oil Price a Determinant of Employment in Oil Intensive Romanian Communities?

International Journal of Business and Economic Sciences Applied Research

7 Pages Posted: 8 Jul 2021

See all articles by Vlad-Cosmin Bulai

Vlad-Cosmin Bulai

Βucharest University of Economic Studies

Alexandra Horobet

Academy of Economic Studies Bucharest

Date Written: February 21, 2020

Abstract

Is The Oil Price a Determinant of Employment in Oil Intensive Romanian Communities?
Abstract: Purpose: The purpose of this study is to determine the resilience of oil intensive Romanian communities to oil price fluctuations. Design/methodology/approach: The methodology employed is based on identifying the communities with the most extensive oil extraction activities using GIS (Geographic Information System) software. We then apply a random effects panel regression model to check the significance of the oil price as a predictor of employment. Finding: Results indicate that the effect of oil price fluctuations is limited, with employment in the identified communities following the national trend. Research limitations/implications: Unfortunately, our study is hindered by data availability issues and a short time series. Nevertheless, conclusions are backed by the country’s characteristics - a diversified economy, integration with refining operations, and the presence of related manufacturing and services activities. Originality/value: The study adds to the existing literature by focusing on a mature region with a long history of hydrocarbon extraction activities. We argue that the study of local communities in mature regions is of great importance in the context of the ongoing energy transition, particularly of those located within the European Union.

Keywords: random effects, oil, resource curse, local community

JEL Classification: O13, Q32, Q35

Suggested Citation

Bulai, Vlad-Cosmin and Horobet, Alexandra, Is The Oil Price a Determinant of Employment in Oil Intensive Romanian Communities? (February 21, 2020). International Journal of Business and Economic Sciences Applied Research, Available at SSRN: https://ssrn.com/abstract=3880378

Vlad-Cosmin Bulai

Βucharest University of Economic Studies ( email )

Alexandra Horobet (Contact Author)

Academy of Economic Studies Bucharest ( email )

Romania

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
5
Abstract Views
22
PlumX Metrics