IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v39y2011i4p2132-2142.html
   My bibliography  Save this article

Crude oil import policy of Turkey: Historical analysis of determinants and implications since 1968

Author

Listed:
  • Ediger, Volkan S.
  • Berk, Istemi

Abstract

Turkey is one of the most energy import dependent countries in the world, suffering deeply from the economic and strategic burdens of oil importation. Our purpose is to determine the factors behind the crude oil import policy of Turkey and to measure their contribution to a well-organized import strategy. We implemented a principle component analysis to construct an Oil Import Vulnerability Index (OIVI) based on four factors, which are crude oil import dependency of primary energy consumption, crude oil import bill as a share of Gross Domestic Product (GDP), non-diversification of import sources, and share of oil in total energy import. The contribution of these factors to the OIVI is found to be approximately equal. While an overall deterioration in the OIVI has been observed during periods of increasing oil prices, better diversification of oil import sources has lead to significant improvements. We suggest Turkish policy-makers implement sound policies, emphasizing diversification of crude oil import sources and reduction of the share of crude oil in primary energy imports to increase energy supply security. This study has also demonstrated that it is possible to construct an index representing crude oil vulnerability caused by import dependency.

Suggested Citation

  • Ediger, Volkan S. & Berk, Istemi, 2011. "Crude oil import policy of Turkey: Historical analysis of determinants and implications since 1968," Energy Policy, Elsevier, vol. 39(4), pages 2132-2142, April.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:4:p:2132-2142
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301-4215(11)00071-1
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert Hampton & George A. Kahn, 1990. "Possible monetary policy responses to the Iraqi oil shock," Economic Review, Federal Reserve Bank of Kansas City, vol. 75(Nov), pages 19-32.
    2. Hillard G. Huntington, 1998. "Crude Oil Prices and U.S. Economic Performance: Where Does the Asymmetry Reside?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 107-132.
    3. Löschel, Andreas & Moslener, Ulf & Rübbelke, Dirk T.G., 2010. "Indicators of energy security in industrialised countries," Energy Policy, Elsevier, vol. 38(4), pages 1665-1671, April.
    4. Lutz Kilian, 2008. "The Economic Effects of Energy Price Shocks," Journal of Economic Literature, American Economic Association, vol. 46(4), pages 871-909, December.
    5. Stephen P. A. Brown & Mine K. Yücel, 1999. "Oil prices and U.S. aggregate economic activity: a question of neutrality," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q II, pages 16-23.
    6. Correlje, Aad & van der Linde, Coby, 2006. "Energy supply security and geopolitics: A European perspective," Energy Policy, Elsevier, vol. 34(5), pages 532-543, March.
    7. Lutz Kilian, 2009. "Not All Oil Price Shocks Are Alike: Disentangling Demand and Supply Shocks in the Crude Oil Market," American Economic Review, American Economic Association, vol. 99(3), pages 1053-1069, June.
    8. Keith Sill, 2007. "The macroeconomics of oil shocks," Business Review, Federal Reserve Bank of Philadelphia, issue Q1, pages 21-31.
    9. Osman Yilmaz, A. & Uslu, Tuncay, 2007. "Energy policies of Turkey during the period 1923-2003," Energy Policy, Elsevier, vol. 35(1), pages 258-264, January.
    10. Altinay, Galip, 2007. "Short-run and long-run elasticities of import demand for crude oil in Turkey," Energy Policy, Elsevier, vol. 35(11), pages 5829-5835, November.
    11. Isabelle Huault & V. Perret & S. Charreire-Petit, 2007. "Management," Post-Print halshs-00337676, HAL.
    12. Mork, Knut Anton, 1989. "Oil and Macroeconomy When Prices Go Up and Down: An Extension of Hamilton's Results," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 740-744, June.
    13. Hamilton, James D, 1983. "Oil and the Macroeconomy since World War II," Journal of Political Economy, University of Chicago Press, vol. 91(2), pages 228-248, April.
    14. Hughes, Larry, 2009. "The four 'R's of energy security," Energy Policy, Elsevier, vol. 37(6), pages 2459-2461, June.
    15. Jacques Percebois, 2007. "Energy vulnerability and its management," Post-Print hal-03060922, HAL.
    16. Umbach, Frank, 2010. "Global energy security and the implications for the EU," Energy Policy, Elsevier, vol. 38(3), pages 1229-1240, March.
    17. Guven, Caglar, 1994. "Energy planning under import restrictions," European Journal of Operational Research, Elsevier, vol. 72(3), pages 518-528, February.
    18. Oladosu, Gbadebo, 2009. "Identifying the oil price-macroeconomy relationship: An empirical mode decomposition analysis of US data," Energy Policy, Elsevier, vol. 37(12), pages 5417-5426, December.
    19. Gnansounou, Edgard, 2008. "Assessing the energy vulnerability: Case of industrialised countries," Energy Policy, Elsevier, vol. 36(10), pages 3734-3744, October.
    20. Brown, Stephen P. A. & Yucel, Mine K., 2002. "Energy prices and aggregate economic activity: an interpretative survey," The Quarterly Review of Economics and Finance, Elsevier, vol. 42(2), pages 193-208.
    21. Li, Xianguo, 2005. "Diversification and localization of energy systems for sustainable development and energy security," Energy Policy, Elsevier, vol. 33(17), pages 2237-2243, November.
    22. Vivoda, Vlado, 2009. "Diversification of oil import sources and energy security: A key strategy or an elusive objective?," Energy Policy, Elsevier, vol. 37(11), pages 4615-4623, November.
    23. Ediger, Volkan S. & Hosgor, Enes & Surmeli, A. Nesen & Tatlidil, Huseyin, 2007. "Fossil fuel sustainability index: An application of resource management," Energy Policy, Elsevier, vol. 35(5), pages 2969-2977, May.
    24. Robert Bacon & Masami Kojima, 2008. "Oil Price Risks," World Bank Publications - Reports 11151, The World Bank Group.
    25. Gupta, Eshita, 2008. "Oil vulnerability index of oil-importing countries," Energy Policy, Elsevier, vol. 36(3), pages 1195-1211, March.
    26. Hui Guo & Kevin L. Kliesen, 2005. "Oil price volatility and U.S. macroeconomic activity," Review, Federal Reserve Bank of St. Louis, vol. 87(Nov), pages 669-684.
    27. World Bank, 2010. "World Development Indicators 2010," World Bank Publications - Books, The World Bank Group, number 4373.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Saleh Mothana Obadi & Matej Korcek, 2015. "Investigation of Driving Forces of Energy Consumption in European Union 28 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 422-432.
    2. Berna Aydogan & Istemi Berk, 2015. "Crude Oil Price Shocks and Stock Returns: Evidences from Turkish Stock Market under Global Liquidity Conditions," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 54-68.
    3. Berk, Istemi & Yetkiner, Hakan, 2014. "Energy prices and economic growth in the long run: Theory and evidence," Renewable and Sustainable Energy Reviews, Elsevier, vol. 36(C), pages 228-235.
    4. Berk, Istemi & Aydogan, Berna, 2012. "Crude Oil Price Shocks and Stock Returns: Evidence from Turkish Stock Market under Global Liquidity Conditions," EWI Working Papers 2012-15, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    5. Ýstemi Berk & Ý. Hakan Yetkiner, 2013. "Energy Prices and Economic Growth: Theory and Evidence in the Long Run," Working Papers 1303, Izmir University of Economics.
    6. Lang, Korbinian & Auer, Benjamin R., 2020. "The economic and financial properties of crude oil: A review," The North American Journal of Economics and Finance, Elsevier, vol. 52(C).
    7. Liu, Chang & Sun, Xiaolei & Chen, Jianming & Li, Jianping, 2016. "Statistical properties of country risk ratings under oil price volatility: Evidence from selected oil-exporting countries," Energy Policy, Elsevier, vol. 92(C), pages 234-245.
    8. Cappelli, Federica & Carnazza, Giovanni, 2023. "The Multi-dimensional Oil Dependency Index (MODI) for the European Union," Resources Policy, Elsevier, vol. 82(C).
    9. Brutschin, Elina & Fleig, Andreas, 2018. "Geopolitically induced investments in biofuels," Energy Economics, Elsevier, vol. 74(C), pages 721-732.
    10. Sovacool, Benjamin K. & Mukherjee, Ishani, 2011. "Conceptualizing and measuring energy security: A synthesized approach," Energy, Elsevier, vol. 36(8), pages 5343-5355.
    11. Aharon, David Y. & Azman Aziz, Mukhriz Izraf & Kallir, Ido, 2023. "Oil price shocks and inflation: A cross-national examination in the ASEAN5+3 countries," Resources Policy, Elsevier, vol. 82(C).
    12. Selvakkumaran, Sujeetha & Limmeechokchai, Bundit, 2013. "Energy security and co-benefits of energy efficiency improvement in three Asian countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 491-503.
    13. Hillard G. Huntington, 2017. "The Historical Roots of U.S. Energy Price Shocks," The Energy Journal, International Association for Energy Economics, vol. 0(Number 5).
    14. Huntington, Hillard, 2016. "The Historical “Roots” of U.S. Energy Price Shocks: Supplemental Results," MPRA Paper 74701, University Library of Munich, Germany.
    15. Valcarcel, Victor J. & Wohar, Mark E., 2013. "Changes in the oil price-inflation pass-through," Journal of Economics and Business, Elsevier, vol. 68(C), pages 24-42.
    16. Broadstock, David C. & Filis, George, 2014. "Oil price shocks and stock market returns: New evidence from the United States and China," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 33(C), pages 417-433.
    17. Aktham I. Maghyereh & Basil Awartani & Osama D. Sweidan, 2019. "Oil price uncertainty and real output growth: new evidence from selected oil-importing countries in the Middle East," Empirical Economics, Springer, vol. 56(5), pages 1601-1621, May.
    18. Christiane Baumeister & Gert Peersman, 2013. "Time-Varying Effects of Oil Supply Shocks on the US Economy," American Economic Journal: Macroeconomics, American Economic Association, vol. 5(4), pages 1-28, October.
    19. Gormus, N. Alper & Atinc, Guclu, 2016. "Volatile oil and the U.S. economy," Economic Analysis and Policy, Elsevier, vol. 50(C), pages 62-73.
    20. Liu, Donghui & Meng, Lingjie & Wang, Yudong, 2021. "The asymmetric effects of oil price changes on China’s exports: New evidence from a nonlinear autoregressive distributed lag model," Journal of Asian Economics, Elsevier, vol. 77(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:39:y:2011:i:4:p:2132-2142. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.