Oil Consumption and GNP Relationship In Turkey: An Empirical Study
Erman Erbaykal and
H.Murat Ertuðrul Additional contact information Erdal Karagöl: Balýkesir Üniversitesi
Erman Erbaykal: Balýkesir Üniversitesi
H.Murat Ertuðrul: Balýkesir Üniversitesi
Authors registered in the RePEc Author Service: Hasan Murat Ertuğrul
This paper will investigate the causal relationship between oil consumption and GNP. For this purpose, we will investigate the presence of cointegration among the variables and use a vector error correction model to test causality relationship. Empirical results for Turkey over the period 1971–2003 suggest that there is cointegration relationship between GNP and oil consumption. We found no causal relationship between oil consumption and GNP in short run whereas there is a long run unidirectional causality running from GNP to oil consumption.