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Exploring the Relationship Between Oil Prices and Economic Growth in Türkiye

Author

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  • Abdulmecit YILDIRIM

    (Muş Alparslan University)

  • Gökhan KONAT

    (Bolu Abant İzzet Baysal University)

Abstract

This study investigates the existence of a long-run relationship between economic growth and oil prices in Türkiye, using annual data for the period 1987-2019. First, the stationarity of the variables is evaluated using the Residual Augmented Least Squares (RALS) based ADF unit root test. Second, the RALS-based cointegration test is used to investigate the long-run relationship between the variables. The findings indicate that there is no long-run relationship between economic growth and oil prices in Türkiye. As a result, it is concluded that the series does not return to equilibrium in the long run and oil price shocks during the financial turmoil may affect economic growth.

Suggested Citation

  • Abdulmecit YILDIRIM & Gökhan KONAT, 2023. "Exploring the Relationship Between Oil Prices and Economic Growth in Türkiye," Bingol University Journal of Economics and Administrative Sciences, Bingol University, Faculty of Economics and Administrative Sciences, vol. 7(2), pages 103-117, December.
    • Handle: RePEc:bgo:journl:v:7:y:2023:i:2:p:103-117
    DOI: https://doi.org/10.33399/biibfad.1295409
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    More about this item

    Keywords

    Ekonomik büyüme; petrol fiyatları; birim kök; eşbütünleşme; RALS; asimetrik nedensellik;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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