Interaction between selected macroekonomic variables and petroleum prices: Turkey samples

Such as Turkey and is also dependent on oil importing countries with a large share of oil in the energy sector directly or indirectly. The energy sector consists of industry, production and capital. The energy sector is of great importance for the development and sustainability of a country. With industrialization, energy resources have an increasingly important place in the economies of countries. Petroleum, one of the primary energy sources, is included in many goods used by consumers in their daily life and is used as an important input for the production sector. While the increase in oil prices especially in oil-importing countries causes an increase in the costs of inflation and input output, the public it causes adverse effects on spending, tax revenues, budget, interest rates, current deficit and economic growth. The main subject of this thesis is to examine the relation between the petroleum prices and selected macroeconomic variables. In this framework, with the data from 1980 to 2019 following test were used to test this theory on Turkish Economy; unit root tests (ADF, PP and Zivot Andrews) and cointegration test (ARDL boundary test). In conclusion these tests shows us that the Turkish Economy oil prices and these selected macroeconomical variables have a strong connection. Moreover with these connections political assumptions can be made. Keywords: Oil prices, ARDL bounds test, Turkish Economy, Macroeconomic variables.