The effect of oil import on the current account deficit: an analysis of Turkey and european unuon member countries.

Energy has an important place in country economies. For this reason, both countries and authors examine how energy items affect the economies of countries. Within the framework of the investigations, they produced policies and took precautions. Crude oil is one of the most important energy items. This study was made in order to see how crude oil import amount creates impact on member states of the European Union and Turkey's current account balance. In the study covering the period of 1996-2016, Vector Autoregressive Model (VAR) was used. The variables used in the analysis are the risk premium, the ratio of the crude oil imports to the gross national product, the exchange rates, the gross national product and the ratio of current account deficit to the gross national product. As a result of the study, Germany, Sweden and Italy could not form a suitable model according to these variables. According to the study, models regarding to Austria, England, Norway, Turkey, Belgium, Czech Republic (Czech Republic), Denmark, Ireland, Greece, Spain, France, the Netherlands, Poland, the Slovak Republic, Finland countries have been created. The results obtained in the study are in parallel with the results obtained in the literature. As a result, the current account deficit model was significant in Ireland, Greece, Finland, Portugal, Belgium and the UK. It is seen that Portugal has the highest description power of the model. Crude oil import model make sense in Ireland, Norway, Greece, France, Slovakia, and Turkey. The highest explanatory power of the model was seen in Turkey. Key Words: Vector Autoregressive Model, Current Account, Oil Import, Exchange Rate, Risk Premium