OIL PRICES AFFECT CURRENT ACCOUNT DEFICIT: EMPIRICAL EVIDENCE FROM TURKEY

  • Furkan BEŞEL

Abstract

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.

Published
Apr 30, 2017
How to Cite
BEŞEL, Furkan. OIL PRICES AFFECT CURRENT ACCOUNT DEFICIT: EMPIRICAL EVIDENCE FROM TURKEY. Journal of Applied Research in Finance and Economics, [S.l.], v. 3, n. 2, p. 13-21, apr. 2017. ISSN 2458-8083. Available at: <http://jarfe.org/index.php/jarfe/article/view/20>. Date accessed: 22 sep. 2017.
Section
Articles