The Effect of Oil Prices on the Investments of Turkish Manufacturing Firms

Authors : Hüseyin DAĞLI, Uğur SEVİM

Pages : 123-128

Doi:10.18037/ausbd.415662

View : 20 | Download : 14

Publication Date : 2017-03-15

Article Type : Research Paper

Abstract :  Nowadays oil is the leading energy source in the world. Oil has got a critical importance on manufacturing, specially, in industrial areas. Whilst oil, directly or indirectly, composes the raw material of various products, it is also used as an energy source in running machinery in the manufacturing process. In the scope of this study it is researched that the effects of oil prices on business investments from the view point of manufacturing firms, operating in Turkey. In this study, international crude oil price data and some balance sheet and income statement data about the firms within the scope of work, are analyzed using the panel data analysis. The results of the study show that oil prices have an avoidant and statistically significant effect for the businesses operating in the manufacturing sectors in Turkey. 
Keywords : Oil Prices, Firm Investments