Macroekonomic effects of energy supply security: The case of Turkey

The aim of this study is investigating the macroeconomic effects of Turkey's energy supply security risk. For this purpose, yearly data is used for the period of 1980- 2016. The causality relationship between energy supply security risk and this risk's economic effects in Turkey is tested by using Vector Error Correction Model (VECM). The empirical findings of the study indicate that two-way causality relationship determine between energy supply security risk and economic growth, investments, inflation and current account deficit in the long period, In addition, one-way causality relationship from energy supply security risk to employment detemine in both short-term and long-term. It is understood from these results that positively affect the macroeconomic stabilities in the long term in case of reduction to a sustainable level of energy supply security risk in Turkey.