Oil price shocks and the composition of current account balance

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Tarih

2020

Dergi Başlığı

Dergi ISSN

Cilt Başlığı

Yayıncı

Central Bank Republic Turkey

Erişim Hakkı

info:eu-repo/semantics/openAccess

Özet

It is a well-established regularity that permanent oil price shocks do not have a permanent effect on the current account deficit. This requires that sub-components of the current account or trade balance will make the necessary adjustments to accommodate the higher energy bill of a country triggered by permanent crude oil price increases. Empirical evidence gathered from Turkey reveals that, in the long run, balancing the current account is provided by a permanent increase in the net exports of Agricultural Production, Maintenance and Repair Services, Travel, Construction, Financial Services, Compensation of Employees, and Goods under Merchanting (non-tradable components of the current account balance); and a permanent decrease in the net exports of Mining, Fishery, Other Goods for BEC Classification, Investment Income, Manufacturing Services on Physical Inputs Owned by Others, and Transport balances mostly in sectors that use energy heavily in production. All these responses are found to be statistically significant in the more than 24 periods we consider in this study. (c) 2020 Central Bank of The Republic of Turkey. Production and hosting by Elsevier B.V.

Açıklama

Anahtar Kelimeler

Oil prices, Current account balance, FAVAR

Kaynak

Central Bank Review

WoS Q Değeri

N/A

Scopus Q Değeri

Q1

Cilt

20

Sayı

1

Künye