Energy price shocks and dynamics of current account in Turkey: a FAVAR Approach
Journal: Pressacademia
Year: 2019

Purpose-In this article, we examine the linkages between current account and energy prices, namely crude oil, coal and natural gas in Turkey the years between 2005 and 2016. Methodology-This article investigates how the changes in the energy prices affect the current account in Turkey. For this purpose, a Factor-Augmented Vector Auto Regression (FAVAR) model is used with economic data from the Turkish economy and world commodity price indexes to obtain empirical results for current account dynam