The relationship between oil and natural gas prices and manufacturing and chemical-petroleum-plastic industry

The aim of this study is to manifest the relationship between oil and natural gas prices, and the indices of ISE manufacturing industry and chemical-petroleum-plastic industry. Unit root and cointegration tests, with and without breaks, are employed in the study where the period between 02.01.1997-3...

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Bibliographic Details
Published in:Academic review of economics and administrative sciences 2013-01, Vol.6 (2), p.64-74
Main Authors: Öztürk, M Basaran, Gümüs, Gülüzar Kurt, Taskin, F Dilvin, Çagl, Efe Çaglar
Format: Article
Language:Turkish
Subjects:
Chemical industry
Cointegration
Energy economics
Energy prices
Energy resources
Natural gas
Oil market
Petrochemical industry
Price formation
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Summary:The aim of this study is to manifest the relationship between oil and natural gas prices, and the indices of ISE manufacturing industry and chemical-petroleum-plastic industry. Unit root and cointegration tests, with and without breaks, are employed in the study where the period between 02.01.1997-31.12.2009 is analyzed. As the results of the tests that are taking the breaks into consideration indicate cointegration between oil prices and indices of ISE manufacturing industry and chemical-petroleum-plastic industry; the tests ignoring breaks do not ascertain any relations between analyzed variables. The results of the study are important in the way that, the unit root tests with structural breaks have superiority over the conventional unit root tests for the used data.
ISSN:1308-4208