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Journals / Business and Economics Research Journal / 2019 / Cilt: 10 - Sayı: 4

Analysis of the Causality Relationship between Brent Crude Oil Prices and Energy Import in Turkey Under Structural Breaks

Esra N KILCI
Pages
777–788
DOI
—
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

The results indicate that there is a causality relationship from Brent crude oil prices to energy import in Turkey in the relevant period.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:Turkey, struggling with the problem of high current account deficit, is an energy dependent country due to lack of oil reserves.
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Key Findings & Data:Considering that energy imports constitutes the biggest share of current account deficit, it is expected that the rise in oil prices will increase the imports upwards.
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Conclusion & Impact:The results indicate that there is a causality relationship from Brent crude oil prices to energy import in Turkey in the relevant period.
🔬Design:Research Article
📍Scope:2006 Verileri
⚙️Variables:Domain Parameters

Özet

Turkey, struggling with the problem of high current account deficit, is an energy dependent country due to lack of oil reserves. Therefore, the changes in energy prices do have impacts on balance of payments through import channel. Considering that energy imports constitutes the biggest share of current account deficit, it is expected that the rise in oil prices will increase the imports upwards. The purpose of this study is to analyze the causality relationship from Brent crude oil prices to energy import by using the monthly data in the period of 2006:08-2018:12. The unit root properties of the series are tested by using Fourier KPSS (2006) unit root test and the causality relationship between the series is investigated by employing Fourier Granger (2016) causality test. Both these tests take into account the impact of multiple structural breaks. The results indicate that there is a causality relationship from Brent crude oil prices to energy import in Turkey in the relevant period.

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Cite This Article

KILCI, E. N. (2019). Analysis of the Causality Relationship between Brent Crude Oil Prices and Energy Import in Turkey Under Structural Breaks. Business and Economics Research Journal, Cilt: 10 - Sayı: 4, 777–788. https://ajindex.com/articles/147315

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