Electricity Consumption and Economic Growth Causality Revisited: Evidence from Turkey
Muhammad Shahbaz (),
Ilhan Ozturk () and
Amjad Ali ()
Bulletin of Energy Economics (BEE), 2015, vol. 3, issue 4, 176-193
The study reconsiders the relationship between electricity consumption and economic growth by incorporating financial development, capital and labor as important factors of production using augmented production function in Turkey for the period of 1971-2009. In doing so, we applied the ARDL bounds testing approach and found long run relationship between electricity consumption, economic growth, financial development, capital and labour. Further, results indicated that electricity consumption, financial development, capital and labor have positive effect on economic growth. The VECM Granger causality analysis shows bidirectional causality between electricity consumption, economic growth, financial development, capital and labor. The findings have important policy implication to sustain economic growth through comprehensive energy policy and developing financial sector in Turkey
Keywords: Electricity consumption; Financial development; Economic growth (search for similar items in EconPapers)
JEL-codes: C32 Q43 (search for similar items in EconPapers)
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Working Paper: Electricity consumption and economic growth causality revisited: evidence from Turkey (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ijr:beejor:v:3:y:2015:i:4:p:176-193
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