Electricity consumption and economic growth causality revisited: evidence from Turkey

Muhammad Shahbaz and Ozturk Ilhan

MPRA Paper from University Library of Munich, Germany

Abstract: 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 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: F43 Q4 (search for similar items in EconPapers)
Date: 2012-03-01, Revised 2012-03-20
New Economics Papers: this item is included in nep-ara, nep-cwa, nep-ene and nep-fdg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

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Related works:
Journal Article: Electricity Consumption and Economic Growth Causality Revisited: Evidence from Turkey (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:37637

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