ABSTRACT:
This study attempts to examine the short- and long-run relationships between Turkey’s palm oil imports, palm oil prices, sunflower oil prices and domestic income, using the Autoregressive Distributed Lag (ARDL) method with data collected for the period 1980 to 2015. The bound test indicates that there is a long-run relationship between the studied variables. The empirical results show that domestic income, measured by the Gross Domestic Product (GDP), and sunflower oil prices have positive significant relationships with palm oil demand in Turkey in the long run. At the same time, palm oil prices show a significant negative relationship with palm oil demand in Turkey.
Keywords: palm oil, Turkey, ARDL, GDP, unit root test, error correction models
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