TY  - JOUR
T1  - ENERGY PRICE SHOCKS AND DYNAMICS OF CURRENT ACCOUNT IN TURKEY: IS THIS TIME DIFFERENT?
AU  - Kucukefe, Bige
PY  - 2019
DA  - July
DO  - 10.17261/Pressacademia.2019.1097
JF  - PressAcademia Procedia
JO  - PAP
PB  - Suat TEKER
WT  - DergiPark
SN  - 2459-0762
SP  - 231
EP  - 235
VL  - 9
IS  - 1
LA  - en
AB  - Purpose- In this article, we examine the link between current account andenergy prices, namely crude oil, coal and natural gas in Turkey the yearsbetween 2005 and 2016.Methodology- This article investigates how thechanges in the energy prices affect the current account in Turkey. For thispurpose, a Factor-Augmented Vector Auto Regression (FAVAR) model is used witheconomic data from the Turkish economy and world commodity price indexes toobtain empirical results for current account dynamics in the Turkish economy.The impact of various factors that include crude oil prices, coal prices,natural gas prices data have been studied by obtaining impulse responsefunctions. Findings- Natural gas prices gradually affect the current account. Theimpact is permanent after a period indicating a very limited elasticity. Oilprices have an immediate impact on the current account. Swings, in the longrun, indicate some degree of elasticity. The negative effect of coal price onthe current account deficit occurs with a significant delay.Conclusion- We can conclude that, from all of the energy indices, the crudeoil price is the most effective on the current account.
KW  - Current account
KW  - oil prices
KW  - FAVAR model
KW  - Turkish economy
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UR  - https://doi.org/10.17261/Pressacademia.2019.1097
L1  - https://dergipark.org.tr/en/download/article-file/770839
ER  -