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, 2015, 5(2), 402-407.

6 Pages Posted: 18 Apr 2015

See all articles by Sevda Yaprakli

Sevda Yaprakli

Ataturk University - Economics Department

Fatih Kaplan

Mersin University - Tarsus School of Applied Technology and Management

Date Written: April 16, 2015

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 structural breaks. In empirical 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 variable for testing internal and external crises affect. We concluded that the external crises had major impact on import oil demand on the contrary to internal crises in the long run.

Keywords: Income Elasticity, Price Elasticicy, Structual Breaks

JEL Classification: C22, F10, F14

Suggested Citation

Yaprakli, Sevda and Kaplan, Fatih, Re-Examining of the Turkish Crude Oil Import Demand with Multi-Structural Breaks Analysis in the Long Run Period (April 16, 2015). International Journal of Energy Economics and Policy, 2015, 5(2), 402-407., Available at SSRN: https://ssrn.com/abstract=2595122

Sevda Yaprakli

Ataturk University - Economics Department ( email )

Turkey

Fatih Kaplan (Contact Author)

Mersin University - Tarsus School of Applied Technology and Management ( email )

Mersin
Turkey

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