The Relationship between Aggregated–Disaggregated Energy Consumption and Economic Growth in Turkey

Uğur Pata () and Harun Terzi

Business and Economics Research Journal, 2016, vol. 7, issue 4, 1-15

Abstract: Energy is recognized as an important factor in the production process by capital and labor. Energy consumption has increased substantially in the world, especially since the Industrial Revolution and the 1973 oil crisis. In this study, the causality relationship between energy consumption (petroleum, electricity, per capita and total primary energy consumption, carbon dioxide emissions) and economic growth is estimated by using the JJ cointegration test, DLVAR, generalized impulse-response, and variance decomposition analyses for the Turkish economy for the 1972–2011 period. According to the results of the JJ cointegration test, there is no co-movement between energy consumption and economic growth in the long run, but the DLVAR analysis indicates that energy is an important input for the Turkish economy's steady growth in the short run. The findings lead to the conclusion that a positive unidirectional causality runs from petroleum, electricity, primary energy consumption, and carbon dioxide emissions to economic growth in the short run. The results of generalized impulse-response and variance decomposition analyses also support the results of the DLVAR analysis.

Keywords: Energy Consumption; Economic Growth; Dolado-Lütkepohl VAR; Causality; Turkey (search for similar items in EconPapers)
JEL-codes: C22 Q40 Q43 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.berjournal.com/the-relationship-between ... mic-growth-in-turkey Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:buecrj:0244

Access Statistics for this article

Business and Economics Research Journal is currently edited by Adem Anbar

More articles in Business and Economics Research Journal from Uludag University, Faculty of Economics and Administrative Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Adem Anbar ().