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Do Institutional Quality and Oil Prices Matter for Economic Growth in Russia: An Empirical Study

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  • Alexander Bass

    (Department of Financial Markets and Banks, Financial University under the Government of the Russian Federation, Moscow, Russia)

Abstract

In this article we aim to assess the impact of institutional quality and world oil prices on performance of Russian manufacturing sector. Based on the data for the period 1996-2017 for Russia we explore the relationship between institutional quality, measured by the corruption perception index, world oil prices (Brent) and performance of Russian GDP using a VEC framework. For detecting the casual relationship, Granger causality test is applied. The results of the study show that oil prices, institutional quality and economic growth in Russia are cointegrated in the long-run. Yet short-run effects are statistically insignificant. Results of Granger causality test show unidirectional causality running from oil prices and institutional quality to economic growth.

Suggested Citation

  • Alexander Bass, 2019. "Do Institutional Quality and Oil Prices Matter for Economic Growth in Russia: An Empirical Study," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 76-83.
    • Handle: RePEc:eco:journ2:2019-01-10
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    References listed on IDEAS

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    Cited by:

    1. Hartwell, Christopher A. & Korovkin, Vladimir, 2021. "Contracting in a void: The role of the banking sector in developing property rights in Russia," The Quarterly Review of Economics and Finance, Elsevier, vol. 82(C), pages 113-127.
    2. Dmitry Burakov & Alexander Bass, 2019. "Institutional determinants of environmental pollution in Russia: a non-linear ARDL approach," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(1), pages 510-524, September.
    3. Köse, Nezir & Ünal, Emre, 2020. "The impact of oil price shocks on stock exchanges in Caspian Basin countries," Energy, Elsevier, vol. 190(C).

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    More about this item

    Keywords

    oil prices; economic growth; institutional quality; vector autoregression;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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