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Re-examining of the Turkish Crude Oil Import Demand with Multi-structural Breaks Analysis in the Long Run Period

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  • Sevda Yaprakli

    (Department of Economics, Ataturk University, Erzurum, 25240, Turkey,)

  • Fatih Kaplan

    (Department of International Trade and Logistics, Mersin University, Mersin, 33420, Turkey.)

Abstract

This study examines the Turkish crude oil import demand for the period of 1970-2013. Unlike earlier studies on Turkey, we tested the income and price elasticities of crude oil demand with structual breaks. In emprical analysis, the income and the price of crude oil used as a function of crude oil import demand. We employed Carrion-i-Silvestre et al. (2009) test for testing unit root, Maki (2012) cointegration test employed for testing for the existence of relationships. Dynamic ordinary least squares estimation employed for the estimating the long-run income and price elasticities. The empirical results show that the partial elasticities of crude oil import demand; income is (0.18) and crude oil is (-0.25). In the light of these results, it is said that income and price elasticities of demand for crude oil import in the long-run are inelastic. Furthermore, we used dummy varibale for testing internal and external crisses affetct. We conlcuded that the external crises had major impact on import oil demand on the contrary to internal crises in the long run.

Suggested Citation

  • Sevda Yaprakli & Fatih Kaplan, 2015. "Re-examining of the Turkish Crude Oil Import Demand with Multi-structural Breaks Analysis in the Long Run Period," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 402-407.
    • Handle: RePEc:eco:journ2:2015-02-02
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    References listed on IDEAS

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    Cited by:

    1. Ismail Kavaz, 2020. "Estimating the Price and Income Elasticities of Crude Oil Import Demand for Turkey," International Econometric Review (IER), Econometric Research Association, vol. 12(2), pages 98-111, September.
    2. Yousaf Raza, Muhammad & Lin, Boqiang, 2021. "Oil for Pakistan: What are the main factors affecting the oil import?," Energy, Elsevier, vol. 237(C).
    3. Mishra, Brajesh & Ghosh, Sajal & Kanjilal, Kakali, 2023. "Policies to reduce India's crude oil import dependence amidst clean energy transition," Energy Policy, Elsevier, vol. 183(C).
    4. Ozturk, Ilhan & Arisoy, Ibrahim, 2016. "An estimation of crude oil import demand in Turkey: Evidence from time-varying parameters approach," Energy Policy, Elsevier, vol. 99(C), pages 174-179.
    5. Ayman Omar, 2015. "West Texas Intermediate and Brent Spread during Organization of the Petroleum Exporting Countries Supply Disruptions," International Journal of Energy Economics and Policy, Econjournals, vol. 5(3), pages 693-703.

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    More about this item

    Keywords

    Income Elasticity; Price Elasticicy; Structual Breaks;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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