International Conference on Eurasian Economies
10-12 July 2017 – Istanbul, TURKEY
Paper detail
Paper ID : 1892
Status : Paper published
Language : Turkish
Topic : Natural Resources and Environment
Presenter: Assoc. Prof. Dr. Erhan İşcan
Session : 4B Finans II
Impact of Energy Price Volatility on Macroeconomic Performance
Enerji Fiyatlarındaki Volatilitenin Makroekonomik Performans Üzerine Etkisi
- Prof. Dr. Neşe Algan (Çukurova University, Türkiye)
- Assoc. Prof. Dr. Erhan İşcan (Çukurova University, Türkiye)
- Dr. Duygu Serin Oktay (Çukurova University, Türkiye)
- Ph.D. candidate Duygu Kara (Çukurova University, Türkiye)
Abstract
Last two decades witnessed increasingly volatile international markets with the many financial crises. Concurrently, volatility in energy prices and energy markets cause various adverse impacts on both national and world economies. Especially this volatility affected emerging markets and increased the fragility of the emerging economies. Because of the adverse impacts of this volatility, understanding the price behavior and impact of volatility of energy prices on economy became crucial for every economic agent in the economy including policy makers in the governments, consumers, and producers. The relationship between energy prices and macroeconomic performance has been studied widely as a consequence its long term macroeconomic impacts to world economies. Differently, the aim of this study is analyzing the effect of energy price volatility on macroeconomic indicators of Turkey. For that purpose, we employed a GARCH model to investigate effect of energy price volatility on macroeconomic performance for Turkey from 2002 to 2016. We use various energy prices and macroeconomic indicators data for the period from January 2002 to December 2016, obtained from the IFS and CBRT-EDDS. By applying GARCH methodology to various energy prices and macroeconomic indicators, we contribute to the understanding of price volatility in energy markets, and suggest policies that would be of use to policy makers in the governments, consumers, and producers.
JEL codes: C22, E20, Q43
Algan, Neşe, İşcan, Erhan, Serin Oktay, Duygu, Kara, Duygu (2017). "Impact of Energy Price Volatility on Macroeconomic Performance" in Proceedings of International Conference of Eurasian Economies 2017, pp.291-300, Istanbul, TURKEY.
DOI: https://doi.org/10.36880/C08.01892
