AI Summary & Key Takeaways
AI InsightAs a result, it has been determined that there is a causal relationship between energy imports to the current account deficit for the 1999-2008 and 2010-2019 periods and from the current account deficit to the energy imports for the 2000-2009 period.
📌 3 Key Takeaways
Abstract
In the last century, with the increase in production activities in the World, There has been a rapid increase in energy demand. Countries with insufficient energy supply resources have increased their energy imports to meet their energy demand. The rise in energy demand worldwide caused the exchange rate and increased energy prices, causing developing countries to allocate more shares to energy imports in GDP. Turkey, which has insufficient fossil energy supply sources, is one country that spends high on energy imports. Increasing energy imports in developing countries and Turkey is one of the most important reasons for the current account deficit. This article analyses the effects of Turkey’s energy imports on the current account deficit with annual data for the period “1990-2019”. ADF estimates relationships between energy imports and current account deficit, PP and LS unit root tests with two structural breaks, Hacker and Hatemi-J symmetrical and time-varying causality tests. As a result, it has been determined that there is a causal relationship between energy imports to the current account deficit for the 1999-2008 and 2010-2019 periods and from the current account deficit to the energy imports for the 2000-2009 period.