An estimation of crude oil import demand in Turkey: Evidence from time-varying parameters approach
Yükleniyor...
Dosyalar
Tarih
2016
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
ELSEVIER SCI LTD
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
The aim of this study is to model crude oil import demand and estimate the price and income elasticities of imported crude oil in Turkey based on a time-varying parameters (TVP) approach with the aim of obtaining accurate and more robust estimates of price and income elasticities. This study employs annual time series data of domestic oil consumption, real GDP, and oil price for the period 1966-2012. The empirical results indicate that both the income and price elasticities are in line with the theoretical expectations. However, the income elasticity is statistically significant while the price elasticity is statistically insignificant. The relatively high value of income elasticity (1.182) from this study suggests that crude oil import in Turkey is more responsive to changes in income level. This result indicates that imported crude oil is a normal good and rising income levels will foster higher consumption of oil based equipments, vehicles and services by economic agents. The estimated income elasticity of 1.182 suggests that imported crude oil consumption grows at a higher rate than income. This in turn reduces oil intensity over time. Therefore, crude oil import during the estimation period is substantially driven by income.
Açıklama
WOS: 000388055800018
Anahtar Kelimeler
Oil import Demand, Price and İncome Elasticities, Oil Price, Oil Consumption, GDP
Kaynak
Energy Polıcıy
WoS Q Değeri
Q1
Scopus Q Değeri
Q1
Cilt
99
