Causal Relationship Between Transport Inflation with Oil Prices and Exchange Rates

The aim of this study is to examine the effects of oil prices and exchange rates on the inflation of the transportation sector between the years 2010 and 2022. The Toda-Yamamoto and Breitung- Candelon frequency domain causality test were employed as the methodologies for analysis. The variables used...

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Main Author: Tacinur Akça
Format: Article
Language:English
Published: Istanbul University Press 2023-01-01
Series:İktisat Politikası Araştırmaları Dergisi
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Online Access:https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/130B23D56CA9434886A051062A789C72
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author Tacinur Akça
author_facet Tacinur Akça
author_sort Tacinur Akça
collection DOAJ
description The aim of this study is to examine the effects of oil prices and exchange rates on the inflation of the transportation sector between the years 2010 and 2022. The Toda-Yamamoto and Breitung- Candelon frequency domain causality test were employed as the methodologies for analysis. The variables used in the analysis are: the transportation services price index, European Brent oil prices, and dollar rate. In terms of the TodaYamamoto test results, a unidirectional causality relationship was found from oil prices and dollar rates to transportation prices over time. In terms of the Breitung and Candelon test results, short, medium, and long-term effects, both temporary and permanent, were determined from both oil prices and dollar exchange rates to transportation prices. When the results are evaluated in general, increases in energy prices and exchange rates cause inflation in the transportation sector. Reducing energy consumption, which is an important cost factor in the production and consumption channel of transportation, will not only reduce imports, but also reduce the need for foreign currency, while reducing prices in the transportation sector.
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institution DOAJ
issn 2148-3876
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publishDate 2023-01-01
publisher Istanbul University Press
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series İktisat Politikası Araştırmaları Dergisi
spelling doaj-art-9d350cf9144149e483dfd5d628b109e32025-08-20T02:57:35ZengIstanbul University Pressİktisat Politikası Araştırmaları Dergisi2148-38762023-01-0110124526010.26650/JEPR1217835123456Causal Relationship Between Transport Inflation with Oil Prices and Exchange RatesTacinur Akça0https://orcid.org/0000-0002-4071-9525Ordu Üniversitesi, Ordu, TürkiyeThe aim of this study is to examine the effects of oil prices and exchange rates on the inflation of the transportation sector between the years 2010 and 2022. The Toda-Yamamoto and Breitung- Candelon frequency domain causality test were employed as the methodologies for analysis. The variables used in the analysis are: the transportation services price index, European Brent oil prices, and dollar rate. In terms of the TodaYamamoto test results, a unidirectional causality relationship was found from oil prices and dollar rates to transportation prices over time. In terms of the Breitung and Candelon test results, short, medium, and long-term effects, both temporary and permanent, were determined from both oil prices and dollar exchange rates to transportation prices. When the results are evaluated in general, increases in energy prices and exchange rates cause inflation in the transportation sector. Reducing energy consumption, which is an important cost factor in the production and consumption channel of transportation, will not only reduce imports, but also reduce the need for foreign currency, while reducing prices in the transportation sector.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/130B23D56CA9434886A051062A789C72transportation pricesinflationoil pricesexchange ratefrequency domain causality
spellingShingle Tacinur Akça
Causal Relationship Between Transport Inflation with Oil Prices and Exchange Rates
İktisat Politikası Araştırmaları Dergisi
transportation prices
inflation
oil prices
exchange rate
frequency domain causality
title Causal Relationship Between Transport Inflation with Oil Prices and Exchange Rates
title_full Causal Relationship Between Transport Inflation with Oil Prices and Exchange Rates
title_fullStr Causal Relationship Between Transport Inflation with Oil Prices and Exchange Rates
title_full_unstemmed Causal Relationship Between Transport Inflation with Oil Prices and Exchange Rates
title_short Causal Relationship Between Transport Inflation with Oil Prices and Exchange Rates
title_sort causal relationship between transport inflation with oil prices and exchange rates
topic transportation prices
inflation
oil prices
exchange rate
frequency domain causality
url https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/130B23D56CA9434886A051062A789C72
work_keys_str_mv AT tacinurakca causalrelationshipbetweentransportinflationwithoilpricesandexchangerates