OIL PRICES AFFECT CURRENT ACCOUNT DEFICIT: EMPIRICAL EVIDENCE FROM TURKEY
This study investigates the relationship between current account deficit and oil prices in Turkey over the period from 1976 to 2016 by utilizing the Zivot-Andrews Unit Root Test, Gregory-Hansen Cointegration Test, Toda-Yamamoto Causality Test methods. The tests indicate that both variables are stationary when their first differences are taken. According to cointegration test results there is a long run relationship between the current account deficit and oil prices in Turkey. The results of Toda-Yamamoto Causality Test indicate that there is unidirectional causality from oil prices to current account deficit.