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Is the relationship between oil-gas prices index and economic growth in Turkey permanent?

Oil and gas are the most important inputs that countries use in their production process. For this reason, changes in oil-gas prices affect economic growth, which is the most important macroeconomic performance indicator. This study aims to investigate whether the relations between the oil-gas price...

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Detalles Bibliográficos
Autores principales: Kırca, Mustafa, Canbay, Şerif, Pirali, Kerem
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier Ltd. 2020
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7474837/
https://www.ncbi.nlm.nih.gov/pubmed/34173421
http://dx.doi.org/10.1016/j.resourpol.2020.101838
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author Kırca, Mustafa
Canbay, Şerif
Pirali, Kerem
author_facet Kırca, Mustafa
Canbay, Şerif
Pirali, Kerem
author_sort Kırca, Mustafa
collection PubMed
description Oil and gas are the most important inputs that countries use in their production process. For this reason, changes in oil-gas prices affect economic growth, which is the most important macroeconomic performance indicator. This study aims to investigate whether the relations between the oil-gas prices index and economic growth are permanent in Turkey, covering the period 1998Q1-2019Q4. For this purpose, the relationships between variables are first examined by Granger and Toda-Yamamoto causality tests with structural breaks. Then, we analyze whether the relationships between them are permanent using frequency domain causality tests based on these two tests. There is insignificant causality relationship between the variables according to Granger and the Frequency Domain Causality Test results based on this test. However, according to the results of the Toda-Yamamoto causality test with a structural break, there is a causality relationship from oil-gas prices to economic growth. According to the results of the Frequency Domain Causality Test based on this test, the permanent effect of oil-gas prices on economic growth is approximately five years.
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spelling pubmed-74748372020-09-08 Is the relationship between oil-gas prices index and economic growth in Turkey permanent? Kırca, Mustafa Canbay, Şerif Pirali, Kerem Resour Policy Article Oil and gas are the most important inputs that countries use in their production process. For this reason, changes in oil-gas prices affect economic growth, which is the most important macroeconomic performance indicator. This study aims to investigate whether the relations between the oil-gas prices index and economic growth are permanent in Turkey, covering the period 1998Q1-2019Q4. For this purpose, the relationships between variables are first examined by Granger and Toda-Yamamoto causality tests with structural breaks. Then, we analyze whether the relationships between them are permanent using frequency domain causality tests based on these two tests. There is insignificant causality relationship between the variables according to Granger and the Frequency Domain Causality Test results based on this test. However, according to the results of the Toda-Yamamoto causality test with a structural break, there is a causality relationship from oil-gas prices to economic growth. According to the results of the Frequency Domain Causality Test based on this test, the permanent effect of oil-gas prices on economic growth is approximately five years. Elsevier Ltd. 2020-12 2020-09-06 /pmc/articles/PMC7474837/ /pubmed/34173421 http://dx.doi.org/10.1016/j.resourpol.2020.101838 Text en © 2020 Elsevier Ltd. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Kırca, Mustafa
Canbay, Şerif
Pirali, Kerem
Is the relationship between oil-gas prices index and economic growth in Turkey permanent?
title Is the relationship between oil-gas prices index and economic growth in Turkey permanent?
title_full Is the relationship between oil-gas prices index and economic growth in Turkey permanent?
title_fullStr Is the relationship between oil-gas prices index and economic growth in Turkey permanent?
title_full_unstemmed Is the relationship between oil-gas prices index and economic growth in Turkey permanent?
title_short Is the relationship between oil-gas prices index and economic growth in Turkey permanent?
title_sort is the relationship between oil-gas prices index and economic growth in turkey permanent?
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7474837/
https://www.ncbi.nlm.nih.gov/pubmed/34173421
http://dx.doi.org/10.1016/j.resourpol.2020.101838
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