CONTRIBUTION OF RENEWABLE ENERGY AND HUMAN DEVELOPMENT TO ECONOMIC GROWTH IN NEWLY INDUSTRIALISED COUNTRIES

Fatih Akın and Selin Dinçer
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Fatih Akın: ERZINCAN BINALI YILDIRIM UNIVERSITY
Selin Dinçer: KIRIKKALE UNIVERSITESI

Ekonomi Maliye Isletme Dergisi, 2025, vol. 8, issue 1, 46-61

Abstract: In this study, the impact of renewable energy and HDI level on economic growth in newly industrialised countries (NICs) (Brazil, China, India, Indonesia, Malaysia, Mexico, Philippines, South Africa, Thailand, Turkiye) in the period 1990-2022 is examined with the Augmented Mean Group (AMG) estimator and Juodis, Karavias & Sarafidis (JKS, 2021) Granger causality analysis. The results of the LM Bootstrap Panel Cointegration test reveal that there is a long-run relationship between renewable energy, the HDI, and economic growth variables. Panel AMG estimation results show that renewable energy and HDI levels have a positive and significant effect on economic growth across the panel. The results by countries show that renewable energy has a significant and positive effect on economic growth in China, India, Indonesia, and Turkiye. In addition, the HDI level has a positive and statistically significant effect on growth in all countries except South Africa. The JKS Granger causality test results reveal that there is bidirectional causality between HDI and economic growth and between HDI and renewable energy. In addition, unidirectional causality was found from economic growth to renewable energy. The findings emphasise that renewable energy and HDI play an important role in economic growth in NIC countries.

Keywords: Renewable Energy; Human Development Index; Economic Growth; NIC Countries. (search for similar items in EconPapers)
JEL-codes: C33 O13 O15 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:gnx:emid43:2025-8-1-1689871

DOI: 10.46737/emid.1689871

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