Original scientific paper

DO OIL PRICES AFFECT THE USD/YTL EXCHANGE RATE: EVIDENCE FROM TURKEY

Ilhan Ozturk
Mete Feridun
Huseyin Kalyoncu

Abstract

This study aims at investigating the link between international oil prices and the exchange rate in the case of a small open industrial economy without oil resources – Turkey. Johansen cointegration and Granger causality tests are used to analyze the relationship between oil prices and the exchange rate in the period 1982:12-2006:5. We find that international real crude oil prices Granger cause the USD/YTL real exchange rate.

Keywords

oil price; exchange rate; Granger causality; cointegration; Turkey

Hrčak ID:

25949

URI

https://hrcak.srce.hr/25949

Publication date:

30.7.2008.

Article data in other languages: croatian

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