International Congress on Eurasian Economies

International Conference on Eurasian Economies

17-18 September 2013 – St. Petersburg, RUSSIA

Paper detail

Paper ID : 810
Status : Paper published
Language : English
Topic : Natural Resources and Environment
Presenter: Assoc. Prof. Dr. Mehmet Mucuk
Session : 1A Energy

The Relationship between International Oil Prices and Current Account Deficit: The Case of Turkey
The Relationship between International Oil Prices and Current Account Deficit: The Case of Turkey

Abstract

In developing countries such as Turkey, the current account deficit, occuring due to the lack of national savings, is considered to be one of the determinants of economic crisis. At the same time owing to Turkey is dependent on foreign countries for energy resources, current account deficit is highly sensitive to fluctuations in the prices of these resources. This paper, investigates the causal relationship between international oil prices and current account deficit for Turkey using Johansen cointegration and causality tests. The empirical findings show that there is a relationship between two variables in the long term.

JEL codes: Q43, F32

Mucuk, Mehmet, Gerçeker, Mustafa, Ay, Ahmet (2013). "The Relationship between International Oil Prices and Current Account Deficit: The Case of Turkey" in Proceedings of International Conference of Eurasian Economies 2013, pp.24-31, St. Petersburg, RUSSIA.

DOI: https://doi.org/10.36880/C04.00810

Full paper in PDF format.

Session 1A: Energy

Istanbul Beykent University Turkish Central Bank TIKA