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Research Article
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ENERGY IMPORT AND ECONOMIC GROWTH: AN ANALYSIS ON SOME ENERGY IMPORTER COUNTRIES

Year 2019, Volume: 20 Issue: 2, 317 - 334, 30.11.2019

Adem Üzümcü , Ülker Çam Karakaş , Adem Karakaş

Abstract

In many studies analyzing the relationship
between energy production or energy consumption, and economic growth; unilateral
or bilateral causality relationship and mostly a cointegration relationship are
discovered. Although quite a lot of studies about energy consumption and
economic growth relationship have been done in the literature without making a distinction
between energy importer and energy exporter countries; the number of studies
that analysis the relationship between the change in energy import of net
energy importer countries and economic growth is quite small.  In this study, the relationship between the
change in energy import and economic growth within the context of energy
consumption in the sample of 23 net energy importer developed and developing
countries has been tested with this purpose by using Pedroni (1999, 2004) panel
cointegration test and Granger causality analysis. In the conclusion of the
study, the findings that a change in energy import increases economic growth in
a way that supports growth hypothesis, and the existence of bilateral causality
between two variables in a way that confirms feedback hypothesis have been
obtained.

Keywords

energy import economic growth panel cointegration

References

  • Abosedra, S. and H. Baghestani (1989), “New Evidence on The Causal Relationship Between United States Energy Consumption and Gross National Product”, Journal of Energy Development, Vol: 14, pp. 285–292.
  • Akinlo, A. E. (2008), “Energy Consumption and Economic Growth: Evidence From 11 Sub-Saharan Africa Countries”, Energy Economics, Vol: 30, pp. 2391-2400.
  • Ang, J.B. (2008), “Economic Development, Pollutant Emissions and Energy Consumption in Malaysia”, Journal of Policy Modeling, Vol: 30, pp. 271–278.
  • Apergis, Nicholas and James E. Payne (2009), “Energy Consumption and Economic Growth in Central America: Evidence From a Panel Cointegration and Error-Correction Model”, Energy Economics, Vol: 31, pp. 211-216.
  • Belke, A., F. Dobnik and C. Dreger (2011), “Energy Consumption and Economic Growth: New Insights into the Cointegration Relationship”, Energy Economics, Vol: 33 (5), pp. 782-789.
  • Bowden, N. and J. E. Payne (2009), “The Causal Relationship Between US Energy Consumption and Real Output: A Disaggregated Analysis”, Journal of Policy Modeling, Vol: 31 (2), pp. 180–188.
  • Breitung, J., (2000), “The Local Power of Some Unit Root Test for Panel Data”. In Advances in Econometrics, Volume 15: Nonstationary Panels, Panel Cointegration and Dynamic Panels, ed. B. H. Baltagi, 161-178, Amsterdam: JAI Press.
  • Cheng, B.S. (1999), “Causality Between Energy Consumption and Economic Growth in India: An Application of Cointegration and Error-Correction Modeling”, Indian Economic Review, Vol: 34, pp. 39–49.
  • Chontanawat, J., L. C. Hunt and R. Pierse (2008), “Does Energy Consumption Cause Economic Growth?: Evidence from a Systematic Study of Over 100 Countries”, Journal of Policy Modeling, Vol: 30, pp. 209-220.
  • Erol, U. And E. S. H. Yu (1987), “On The Causal Relationship Between Energy and Income for Industrialized Countries”, Journal of Energy Development, Vol: 13, pp. 113–122.
  • Im, K. S., Pesaran, M. H. and Shin, Y., (2003), “Testing for Unit Roots in Heterogeneous Panels”, Journal of Econometrics, 115, 53-74.
  • Kahsai, M.S., C. Nondo, P.V. Schaeffer and T. G. Gebremedhin (2012), “Income Level and the Energy Consumption-GDP Nexus: Evidence From Sub-Saharan Africa”, Energy Economics, Vol: 34 (3), pp. 739-746.
  • Kraft, J. and A. Kraft (1978), “On The Relationship Between Energy and GNP”, Journal of Energy and Development, Vol: 3, pp. 401-403.
  • Lee, C.C. (2005), “Energy Consumption and GDP in Developing Countries: A Cointegrated Panel Analysis”, Energy Economics, Vol: 27, pp. 415–427.
  • Lee, C.C. and C. P. Chang (2007), “Energy Consumption and GDP Revisited: A Panel Analysis of Developed and Developing Countries”, Energy Economics, Vol: 29, pp. 1206–1223.
  • Levin, A., Lin, C. F and Chu, C. S. J., (2002), “Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties”, Journal of Econometrics, 108: 1-24.
  • Lise, W. and K. Van Montfort (2007), “Energy Consumption and GDP in Turkey: Is There a Co-integration Relationship?”, Energy Economics, Vol: 29, pp. 1166–1178.
  • Mahadevan, R. And J. Asafu-Adjaye (2007), “Energy Consumption, Economic Growth and Prices: A Reassessment Using Panel VECM for Developed and Developing Countries”, Energy Policy, Vol: 35 (4), pp. 2481–2490.
  • Nachane, D.M., R. M. Nadkarni and A. V. Karnik (1988), “Cointegration and Causality Testing of The Energy–GDP Relationship: A cross-country Study”, Applied Economics, Vol: 20 (11), pp. 1511–1531.
  • Ockwell, David G. (2008), “Energy and Economic Growth: Grounding Our Understanding in Physical Reality”, Energy Policy, Vol: 36, pp. 4600-4604.
  • Ouedraogo, Nadia S. (2013), “Energy Consumption and Economic Growth: Evidence from The Economic Community of West African States (ECOWAS)”, Energy Economics, Vol: 36, pp. 637–647.
  • Ozturk, Ilhan (2010), “A Literature Survey on Energy-Growth Nexus”, Energy Policy, Vol: 38, pp. 340-349.
  • Oztürk, I., A. Aslan and H. Kalyoncu (2010), “Energy Consumption an Economic Growth Relationship: Evidence from Panel Data for Low and Middle Income Countries”, Energy Policy, Vol: 38, pp. 4422-4428.
  • Paul, S. and R. N. Bhattacharya (2004), “Causality Between Energy Consumption and Economic Growth in India: A Note on Conflicting Results”, Energy Economics, 26 (6), pp. 977–983.
  • Payne, James E. (2010), “A survey of The Electricity Consumption-Growth Literature”, Applied Energy, Vol: 87, pp. 723-731.
  • Pedroni, P. (1999), “Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors”, Oxford Bulletin of Economics of Statistics,61, 653-670.
  • Pedroni, P. (2004), “Panel Cointegration: Asymptotic and Finite Sample Properties of Pooled Time Series Tests with Application to The PPP Hypothesis”, Econometric Theory, 20 (3), 597-625.
  • Persyn, Damiaan and Westerlund, Joakim (2008), “Error-Correctin-Based Cointegration Tests for Panel Data”, The Stata Journal, Vol. 8/2, pp. 232-241.
  • Sadorsky, Perry (2011), “Trade and Energy Consumption in the Middle East”, Energy Economics, Vol: 33, pp. 739-749.
  • Shahiduzman, Md and K. Alam (2012), “Cointegration and Causal Relationship Between Energy Consumption and Output: Assessing Evidence from Australia”, Energy Economics, Vol: 34, pp. 2182-2188.
  • Soytas, Uğur and R. Sarı, (2003), “Energy Consumption and GDP: Causality Relationship in G-7 Countries and Emerging Markets”, Energy Economics, Vol:25, pp. 33–37.
  • Soytas, Uğur and R. Sarı, (2006), “Energy Consumption and Income in G7 Countries”, Journal of Policy Modeling, Vol: 28, pp. 739–750.
  • Squalli, Jay (2007), “Electricity Consumption and Economic Growth: Bounds and Causality Analyses of OPEC Members”, Energy Economics, Vol: 29, pp. 1192-1205.
  • Stern, D.I. (2000), “A Multivariate Cointegration Analysis of The Role of Energy in The US Macroeconomy”, Energy Economics, Vol: 22, pp. 267–283.
  • Wolde-Rufael, Yemane (2005), “Energy Demand and Economic Growth: The African Experience”, Journal of Policy Modeling, Vol: 27, pp. 891-903.
  • Yerdelen Tatoğlu, Ferda (2012), İleri Panel Veri Analizi Stata Uygulamalı, İstanbul: Beta Yayıncılık.
  • Yu, E.S.H. and J. Y. Choi (1985), “The Causal Relationship Between Energy and GNP: An International Comparison”, Journal of Energy and Development, Vol: 10, pp. 249–272.
  • Zamani, M. (2007), “Energy Consumption and Economic Activities in Iran”, Energy Economics, Vol: 29 (6), pp. 1135–1140.
  • Zhang, Xing-Ping and Xiao-Mei Cheng (2009), “Energy Consumption, Carbon Emissions, and Economic Growth in China”, Ecological Economics, Vol: 68 (10), pp. 2706–2712.

Year 2019, Volume: 20 Issue: 2, 317 - 334, 30.11.2019

Adem Üzümcü , Ülker Çam Karakaş , Adem Karakaş

Abstract

References

  • Abosedra, S. and H. Baghestani (1989), “New Evidence on The Causal Relationship Between United States Energy Consumption and Gross National Product”, Journal of Energy Development, Vol: 14, pp. 285–292.
  • Akinlo, A. E. (2008), “Energy Consumption and Economic Growth: Evidence From 11 Sub-Saharan Africa Countries”, Energy Economics, Vol: 30, pp. 2391-2400.
  • Ang, J.B. (2008), “Economic Development, Pollutant Emissions and Energy Consumption in Malaysia”, Journal of Policy Modeling, Vol: 30, pp. 271–278.
  • Apergis, Nicholas and James E. Payne (2009), “Energy Consumption and Economic Growth in Central America: Evidence From a Panel Cointegration and Error-Correction Model”, Energy Economics, Vol: 31, pp. 211-216.
  • Belke, A., F. Dobnik and C. Dreger (2011), “Energy Consumption and Economic Growth: New Insights into the Cointegration Relationship”, Energy Economics, Vol: 33 (5), pp. 782-789.
  • Bowden, N. and J. E. Payne (2009), “The Causal Relationship Between US Energy Consumption and Real Output: A Disaggregated Analysis”, Journal of Policy Modeling, Vol: 31 (2), pp. 180–188.
  • Breitung, J., (2000), “The Local Power of Some Unit Root Test for Panel Data”. In Advances in Econometrics, Volume 15: Nonstationary Panels, Panel Cointegration and Dynamic Panels, ed. B. H. Baltagi, 161-178, Amsterdam: JAI Press.
  • Cheng, B.S. (1999), “Causality Between Energy Consumption and Economic Growth in India: An Application of Cointegration and Error-Correction Modeling”, Indian Economic Review, Vol: 34, pp. 39–49.
  • Chontanawat, J., L. C. Hunt and R. Pierse (2008), “Does Energy Consumption Cause Economic Growth?: Evidence from a Systematic Study of Over 100 Countries”, Journal of Policy Modeling, Vol: 30, pp. 209-220.
  • Erol, U. And E. S. H. Yu (1987), “On The Causal Relationship Between Energy and Income for Industrialized Countries”, Journal of Energy Development, Vol: 13, pp. 113–122.
  • Im, K. S., Pesaran, M. H. and Shin, Y., (2003), “Testing for Unit Roots in Heterogeneous Panels”, Journal of Econometrics, 115, 53-74.
  • Kahsai, M.S., C. Nondo, P.V. Schaeffer and T. G. Gebremedhin (2012), “Income Level and the Energy Consumption-GDP Nexus: Evidence From Sub-Saharan Africa”, Energy Economics, Vol: 34 (3), pp. 739-746.
  • Kraft, J. and A. Kraft (1978), “On The Relationship Between Energy and GNP”, Journal of Energy and Development, Vol: 3, pp. 401-403.
  • Lee, C.C. (2005), “Energy Consumption and GDP in Developing Countries: A Cointegrated Panel Analysis”, Energy Economics, Vol: 27, pp. 415–427.
  • Lee, C.C. and C. P. Chang (2007), “Energy Consumption and GDP Revisited: A Panel Analysis of Developed and Developing Countries”, Energy Economics, Vol: 29, pp. 1206–1223.
  • Levin, A., Lin, C. F and Chu, C. S. J., (2002), “Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties”, Journal of Econometrics, 108: 1-24.
  • Lise, W. and K. Van Montfort (2007), “Energy Consumption and GDP in Turkey: Is There a Co-integration Relationship?”, Energy Economics, Vol: 29, pp. 1166–1178.
  • Mahadevan, R. And J. Asafu-Adjaye (2007), “Energy Consumption, Economic Growth and Prices: A Reassessment Using Panel VECM for Developed and Developing Countries”, Energy Policy, Vol: 35 (4), pp. 2481–2490.
  • Nachane, D.M., R. M. Nadkarni and A. V. Karnik (1988), “Cointegration and Causality Testing of The Energy–GDP Relationship: A cross-country Study”, Applied Economics, Vol: 20 (11), pp. 1511–1531.
  • Ockwell, David G. (2008), “Energy and Economic Growth: Grounding Our Understanding in Physical Reality”, Energy Policy, Vol: 36, pp. 4600-4604.
  • Ouedraogo, Nadia S. (2013), “Energy Consumption and Economic Growth: Evidence from The Economic Community of West African States (ECOWAS)”, Energy Economics, Vol: 36, pp. 637–647.
  • Ozturk, Ilhan (2010), “A Literature Survey on Energy-Growth Nexus”, Energy Policy, Vol: 38, pp. 340-349.
  • Oztürk, I., A. Aslan and H. Kalyoncu (2010), “Energy Consumption an Economic Growth Relationship: Evidence from Panel Data for Low and Middle Income Countries”, Energy Policy, Vol: 38, pp. 4422-4428.
  • Paul, S. and R. N. Bhattacharya (2004), “Causality Between Energy Consumption and Economic Growth in India: A Note on Conflicting Results”, Energy Economics, 26 (6), pp. 977–983.
  • Payne, James E. (2010), “A survey of The Electricity Consumption-Growth Literature”, Applied Energy, Vol: 87, pp. 723-731.
  • Pedroni, P. (1999), “Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors”, Oxford Bulletin of Economics of Statistics,61, 653-670.
  • Pedroni, P. (2004), “Panel Cointegration: Asymptotic and Finite Sample Properties of Pooled Time Series Tests with Application to The PPP Hypothesis”, Econometric Theory, 20 (3), 597-625.
  • Persyn, Damiaan and Westerlund, Joakim (2008), “Error-Correctin-Based Cointegration Tests for Panel Data”, The Stata Journal, Vol. 8/2, pp. 232-241.
  • Sadorsky, Perry (2011), “Trade and Energy Consumption in the Middle East”, Energy Economics, Vol: 33, pp. 739-749.
  • Shahiduzman, Md and K. Alam (2012), “Cointegration and Causal Relationship Between Energy Consumption and Output: Assessing Evidence from Australia”, Energy Economics, Vol: 34, pp. 2182-2188.
  • Soytas, Uğur and R. Sarı, (2003), “Energy Consumption and GDP: Causality Relationship in G-7 Countries and Emerging Markets”, Energy Economics, Vol:25, pp. 33–37.
  • Soytas, Uğur and R. Sarı, (2006), “Energy Consumption and Income in G7 Countries”, Journal of Policy Modeling, Vol: 28, pp. 739–750.
  • Squalli, Jay (2007), “Electricity Consumption and Economic Growth: Bounds and Causality Analyses of OPEC Members”, Energy Economics, Vol: 29, pp. 1192-1205.
  • Stern, D.I. (2000), “A Multivariate Cointegration Analysis of The Role of Energy in The US Macroeconomy”, Energy Economics, Vol: 22, pp. 267–283.
  • Wolde-Rufael, Yemane (2005), “Energy Demand and Economic Growth: The African Experience”, Journal of Policy Modeling, Vol: 27, pp. 891-903.
  • Yerdelen Tatoğlu, Ferda (2012), İleri Panel Veri Analizi Stata Uygulamalı, İstanbul: Beta Yayıncılık.
  • Yu, E.S.H. and J. Y. Choi (1985), “The Causal Relationship Between Energy and GNP: An International Comparison”, Journal of Energy and Development, Vol: 10, pp. 249–272.
  • Zamani, M. (2007), “Energy Consumption and Economic Activities in Iran”, Energy Economics, Vol: 29 (6), pp. 1135–1140.
  • Zhang, Xing-Ping and Xiao-Mei Cheng (2009), “Energy Consumption, Carbon Emissions, and Economic Growth in China”, Ecological Economics, Vol: 68 (10), pp. 2706–2712.
There are 39 citations in total.

Details

Primary Language English
Journal Section Makaleler
Authors

Adem Üzümcü

Ülker Çam Karakaş

Adem Karakaş

Publication Date November 30, 2019
Submission Date February 13, 2019
Published in Issue Year 2019 Volume: 20 Issue: 2

Cite

APA Üzümcü, A., Çam Karakaş, Ü., & Karakaş, A. (2019). ENERGY IMPORT AND ECONOMIC GROWTH: AN ANALYSIS ON SOME ENERGY IMPORTER COUNTRIES. Cumhuriyet Üniversitesi İktisadi Ve İdari Bilimler Dergisi, 20(2), 317-334. https://doi.org/10.37880/cumuiibf.526582
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