Investigation of the Effects of Terrorist Attacks on Oil Prices with Dynamic Common Correlated Effects Approach

In this study, the effect of terrorist attacks on oil prices was analyzed by considering oil consumption. In the study conducted with the 2001-2018 period data for 10 oil-exporting countries with the most terrorist attacks, the relationship between the variables was analyzed using the Dynamic Common Correlated Effects estimator. The findings show that the increase in terrorist attacks and oil consumption increases the oil prices. With this study, it is aimed to examine the effect of terrorist attacks, which are considered to be largely external, on energy costs and to contribute to the projections by presenting data to the official authorities on how energy costs will develop in the event of possible terrorist attacks.