Testing Causal Relationship Between Energy Costs and Transport Service Prices:Evidence from Turkey

Authors : Cem SAATÇİOĞLU, Akmyrat AMANOV

Pages : 82-86

View : 26 | Download : 11

Publication Date : 2019-12-31

Article Type : Research Paper

Abstract :Price stability is one of the main objectives of policy authorities for the health of the economy. The course of transportation services prices after the change in energy prices is a matter of concern for economists. In this study, the relationship between energy costs and transport service prices in Turkey's economy for a sample period of 2003M01-2019M03 is examined. The Johansen cointegration test is used to show long-run relationships between variables. According to findings; there is a one-way causality relationship from energy prices to the price of transport service as expected. It is seen thata 1% increase in energy prices leads to a 4.65% increase in transportation services prices.
Keywords : Transportation Services Prices, Johansen Cointegration Test, Energy Costs