The Inflationary Effect of Price Increases in Oil Products in Turkey

Osman Peker () and Mehmet Mercan ()
Additional contact information
Osman Peker: Adnan Menderes Universitesi, Iktisadi ve Idari Bilimler Fakultesi, Iktisat Bolumu
Mehmet Mercan: Hakkari Universitesi, Iktisadi ve Idari Bilimler Fakultesi, Iktisat Bolumu

Ege Academic Review, 2011, vol. 11, issue 4, 553-562

Abstract: In this study, the inflationary effect of price increases in oil products was investigated for Turkey’s economy using monthly data for the period 1996 - 2009. According to the empirical evidence obtained from the study made with bounds testing approach developed by Pesaran et al. (2001), co-integration relationship between the variables have been determined. Accordingly, in the long-term analysis, inflationary effect of price increases of oil products was found positive and statistically significant in line with theoretical expectations. In its short-term analysis, coefficient of the error correction term was found statistically significant and negative. Therefore, deviations occured between the variables converge to long-term equilibrium level.

Keywords: Oil product prices; crude oil prices; bounds testing approach; Turkey (search for similar items in EconPapers)
JEL-codes: E31 L70 Q43 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.onlinedergi.com/makaledosyalari/51/pdf2011_4_5.pdf (application/pdf)
http://onlinedergi.com/arsiv/arsivDetay.aspx?yil=2011&peryot=4 Website of the journal issue (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ege:journl:v:11:y:2011:i:4:p:553-562

Access Statistics for this article

Ege Academic Review is currently edited by Özlem Önder

More articles in Ege Academic Review from Ege University Faculty of Economics and Administrative Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Baris Gök ().