THE ENERGY CONSUMPTION AND ECONOMIC GROWTH IN THE E7 COUNTRIES: COINTEGRATION IN PANEL DATA WITH STRUCTURAL BREAKS


Dogan B., Deger O.

ROMANIAN JOURNAL OF ECONOMIC FORECASTING, cilt.21, ss.63-75, 2018 (SSCI İndekslerine Giren Dergi) identifier identifier

  • Cilt numarası: 21 Konu: 1
  • Basım Tarihi: 2018
  • Dergi Adı: ROMANIAN JOURNAL OF ECONOMIC FORECASTING
  • Sayfa Sayıları: ss.63-75

Özet

Nowadays, the energy factor has become one of the most basic inputs for production. Especially the technological developments, the increase in the product range, the development of international trade and population growth have boosted the demand for energy to a great extent. The relationship between energy and economic growth is an important indicator for the direction of economic policies. In this context, this paper aims at examining the relationship between total energy consumption and economic growth in the E7 countries (Brazil, China, Indonesia, India, Mexico, Russia and Turkey) by using data for the 1990-2016 period. The results of the cointegration analysis with structural breaks suggest that the series move together in the long term. As a result of the analysis, a 1% increase in energy consumption leads to 0.123% increase in economic growth, based on the overall figures of the panel.