The relative effects of crude oil price and exchange rate on petroleum product prices: Evidence from a set of Northern Meditteranean countries
Berument, M. H., Sahin, A., & Sahin, S. (2014). The relative effects of crude oil price and exchange rate on petroleum product prices: Evidence from a set of Northern Mediterranean countries. Economic Modelling, 42, 243-249.
Please cite this item using this persistent URLhttp://hdl.handle.net/11693/12511
This paper provides a set of empirical evidence from five Northern Mediterranean countries that are subject to similar refinery reference prices regarding the relative sensitivity of crude oil prices and exchange rate on (pre-tax) petroleum product prices. The empirical evidence reveals that a one percent increase in exchange rate (depreciation) increases petroleum product prices less than a one percent increase in crude oil prices does in the long run. In the short run, however, a one percent increase in exchange rate increases petroleum product prices more than a one percent increase in crude oil prices does. © 2014 Elsevier B.V. All rights reserved.
- Department of Economics