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Does Trade Openness Affect Energy Security? Empirical Evidence from Türkiye

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  • Cem GÖKCE
  • Erdal DEMİRHAN

Abstract

Trade openness can create advantageous and disadvantageous situations for national economies. The impacts of trade openness on energy security are also crucial for policymakers, especially in countries dependent on fossil resources. This study aims to identify the link between trade openness and energy security and to prove that trade openness is one of the determinants of energy security for the Turkish economy. In the study, long-run analysis was carried out using cointegration analysis based on time series analysis. We used Türkiye's annual data for the period 1980-2018. Empirical findings point to a long-run relationship between the variables. According to the estimation results, trade openness increases the energy security risk. This result shows that increasing trade openness increases energy security risk due to the scale effect. We can say that the scale and composition effects dominate the relationship between openness and energy security for Türkiye. As can be seen from the study's empirical results, there is a significant relationship between trade openness and energy security in Türkiye, both in the short and long run. In this context, policymakers need to implement energy policies and trade policies simultaneously and with consideration for each other.

Suggested Citation

  • Cem GÖKCE & Erdal DEMİRHAN, 2025. "Does Trade Openness Affect Energy Security? Empirical Evidence from Türkiye," Journal of Research in Economics, Politics & Finance, Ersan ERSOY, vol. 10(1), pages 44-57.
  • Handle: RePEc:ahs:journl:v:10:y:2025:i:1:p:44-57
    DOI: https://doi.org/10.30784/epfad.1581224
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    More about this item

    Keywords

    Energy Security; Trade Openness; Energy Policy; Trade Policy;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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