It's the antenna. The signal extends in a circle from the wire, that activates the electronics in the dog collar. The most common setup is the collar beeps first then shocks the dog ( or human if he's holding the collar). It can be buried or hung above ground.
A friend has most of her 9 acre horse farm wired to keep the dogs in, most of it runs about a foot above the ground on the fence that circles the property. This prevents the diggers and fence jumpers. It's almost a mile of wire, I know because I had to rewire the whole fence line after the 2008 ice storm..
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