THE RELATIONSHIP BETWEEN CURRENT ACCOUNT DEFICIT IN TURKEY AND OIL PRICES IN THE WORLD Cover Image

TÜRKİYE’DE CARİ AÇIK İLE DÜNYA PETROL FİYATLARI İLİŞKİSİ: 1980-2017
THE RELATIONSHIP BETWEEN CURRENT ACCOUNT DEFICIT IN TURKEY AND OIL PRICES IN THE WORLD

Author(s): Osman Bahadır SİNAN
Subject(s): Energy and Environmental Studies, Economic history, Economic development, Financial Markets
Published by: Sage Yayınları
Keywords: Economic Growth; Oil Prices; VAR Model;

Summary/Abstract: As Turkey's economy grows, need for energy and demand for oil increases. One of the main factors that negatively affect the current account deficit is dependence on foreign energy and increasing energy prices in Turkey. Turkey is obliged to import energy to grow. Therefore, it will be inevitable that energy imports will affect the current account deficit in the future. The direct effects of fluctuations in oil prices on Turkey's economy growth, balance of payments, inflation and the budget is carried out. However, the implications are also implicit. The relationship between current account deficit and oil prices in Turkey, for the period 1980-2017 is analyzed through VAR model analysis, Engle-Granger, Johansen cointegration test and error correction model. The result is there is a causal relationship between economic growth and oil prices for the country.

  • Issue Year: 10/2018
  • Issue No: 40
  • Page Range: 165-175
  • Page Count: 11
  • Language: Turkish