Author/Authors :
GÖRÜŞ, Muhammed Şehid Yıldırım Beyazıt Üniversitesi - Siyasal Bilgiler Fakültesi - İktisat Bölümü, turkey , TÜRKÖZ, Kumru Balıkesir Üniversitesi - İktisadi ve İdari Bilimler Fakültesi - İktisat Bölümü, Turkey
Title Of Article :
PRICE AND INCOME ELASTICITIES OF OIL DEMAND IN TURKEY: ARDL BOUND TEST AND CAUSALITY ANALYSIS
Abstract :
The primary objective of this paper is estimating price elasticity and income elasticity of oil demand, and causality relationship between variables with respect to Turkish economy for the period of 1970 and 2013. In the study, ARDL Bound Test approach and Toda-Yamamoto (1995) Granger Causality Test are employed as an estimation method. According to bound test analysis, a cointegration relationship is found between variables. Empirical findings show that long-run price and income elasticity of oil demand in Turkey is -0.17 and 0.51 respectively. On the other hand, short-run price and income elasticity of oil demand estimated as -0.08 and 0.59 respectively. Causality Test results indicates that there is a unidirectional causality from oil price to oil demand. These results suggest that changes in oil prices and income level haven’t strong effects on oil demand in the short-run and long-run in Turkish economy.
NaturalLanguageKeyword :
Oil Demand , ARDL Bound Test , Causality Test
JournalTitle :
dokuz eylul university the journal of graduate school of social sciences
