The Analysis of the Long-Run Relationship Between Oil Consumption and Real GDP in Turkey Through Johansen Co-Integration Method

The main purpose of this study is to examine whether there is a long run relationship between oil consumption and real GDP in Turkey during the period 1965-2011 or not. If there is any relationship between these variables, to determine the direction of this relationship. For this purpose, the Johansen-Juselius Co-integration Method (1990) is used together with the Error Correction Model. According to the findings, there is one co-integration relationship between the series. Error correction mechanism works and the direction of the relationship is from oil consumption to real GDP. This result is important as of it demonstrates that Turkey has been depended to energy.