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THE RELATIONSHIP OF ECONOMIC COMPLEXITY LEVEL WITH ENERGY CONSUMPTION AND ECONOMIC GROWTH: A PANEL DATA ANALYSIS UNDER CROSS-SECTIONAL DEPENDENCE

Year 2023, Volume: 24 Issue: 4, 131 - 152, 27.12.2023

Mehmet Mert Türk

https://doi.org/10.53443/anadoluibfd.1255916

Abstract

Economic complexity implies a set of values that includes concepts such as production techniques, human capital and competitiveness. The competitive dynamic structure of international trade not only pushes countries to diversify their product compositions but also requires that the product produced offers subjective returns to countries. In this respect, exports, which are an important indicator of economic growth, interact with the concept of economic complexity. Shifting from primary products to sophisticated product production in country outputs brings along various cost elements, especially energy costs, in terms of the technological level it requires. Accordingly, the relationship between economic complexity, primary energy consumption and economic growth for the BRICS-T (Brazil, Russia, India, China, South Africa, Turkey) group for the years 2000-2020 is tested using panel data analysis method that takes into account horizontal cross-sectional dependence. As a result of the Emirmahmutoglu and Kose (2011) causality test applied to the model, the strong causality from economic complexity to energy consumption indicates that energy-dependent countries will have difficulties in fulfilling the realization of product sophistication in their economic growth strategies.

Keywords

Economic Complexity Primary Energy Consumption Economic Growth Panel Causality Test

References

  • Adam, A., Garas, A., Katsaiti, M.-S., & Lapatinas, A. (2021). Economic complexity and jobs: An empirical analysis. Economics of Innovation and New Technology, 32(1), 1-28. doi: 10.1080/10438599.2020.1859751
  • Bayar, İ. (2022). Ekonomik karmaşıklık endeksi ve ekonomik büyüme: CIVETS ülkelerinden ampirik kanıtlar. Uluslararası İktisadi ve İdari İncelemeler Dergisi, 36, 237-251. doi: 10.18092/ulikidince.1052678
  • Boğa, S. (2019). Ekonomik karmaşıklık seviyesinin ekonomik büyüme üzerine etkisi: Geçiş ükeleri için bir panel zaman serisi analizi. Akademik Hassasiyetler, 6(12), 357-386.
  • Breitenbach, M. C., Chisadza, C., & Clance, M. (2022). The Economic Complexity Index (ECI) and output volatility: High vs. low income countries. The Journal of International Trade & Economic Development, 31(4), 566-580. doi: 10.1080/09638199.2021.1995467
  • Chakravarty, D., & Mandal, S. K. (2016). Estimating the relationship between economic growth and environmental quality for the brics economies—A dynamic panel data approach. The Journal of Developing Areas, 50(5), 119-130.
  • Çeştepe, H., & Çağlar, O. (2017). Ürün sofistikasyonu ve ekonomik büyüme ilişkisi: Panel veri analizi. Uluslararası Yönetim İktisat ve İşletme Dergisi, 13(13), 992-1000.
  • Doğan, B., Balsalobre-Lorente, D., & Nasir, M. A. (2020). European commitment to COP21 and the role of energy consumption, FDI, trade and economic complexity in sustaining economic growth. Journal of Environmental Management, 273, 2-10. doi: 10.1016/j.jenvman.2020.111146
  • Doru, Ö. (2022). Türkiye’de ekonomik karmaşıklık endeksi (ECI) ve doğrudan yabancı yatırım ilişkisi. Artuklu Kaime Uluslararası İktisadi ve İdari Araştırmalar Dergisi, 5(2), 235-251. doi: 10.55119/artuklu.1200656
  • Emirmahmutoglu, F., & Kose, N. (2011). Testing for granger causality in heterogeneous mixed panels. Economic Modelling, 28(3), 870-876. doi: 10.1016/J.ECONMOD.2010.10.018
  • Fortunato, P., & Razo, C. (2014). Export sophistication, growth and the middle-income trap. J. M. Salazar-Xirinachs, I. Nübler ve R. Kozul-Wright (Editörler), Transforming economies–making industrial policy work for growth, jobs and development (ss. 267-287) içinde. Geneva: International Labour Organization.
  • Gozgor, G. (2018). A new approach to the renewable energy-growth nexus: Evidence from the USA. Environmental Science and Pollution Research, 25(17), 16590-16600. doi: 10.1007/s11356-018-1858-9
  • Hartmann, D., Guevara, M. R., Jara-Figueroa, C., Aristarán, M., & Hidalgo, C. A. (2017). Linking economic complexity, institutions and income inequality. World Development, 93, 75-93. doi: 10.1016/j.worlddev.2016.12.020
  • Harvard Growth Lab. (t.y.). Country & product complexity rankings. The Atlas of Economic Complexity website: https://atlas.cid.harvard.edu/rankings
  • Hausmann, R., Hidalgo, C. A., Bustos, S., Coscia, M., Chung, S., Jimenez, J., … Yildirim, M. A. (2011). The atlas of economic complexity: Mapping paths to prosperity. Massachusetts: HKS Center for International Development and MIT Media Lab.
  • Hausmann, R., Hwang, J., & Rodrik, D. (2007). What you export matters. Journal of Economic Growth, 12(1), 1-25. doi: 10.1007/s10887-006-9009-4
  • Hidalgo, C. A., & Hausmann, R. (2009). The building blocks of economic complexity. Proceedings of the National Academy of Sciences, 106(26), 10570-10575. doi: 10.1073/pnas.0900943106
  • Karadaş, H. A., Koşaroğlu, Ş. M., & Sali̇hoğlu, E. (2017). Enerji tüketimi ve ekonomik büyüme. Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi, 18(1), 129-141.
  • Karasoy, A. (2022). Examining the globalization-economic complexity-financial development nexus in Turkey. Akademik Araştırmalar ve Çalışmalar Dergisi, 14, 485-499. doi: 10.20990/kilisiibfakademik.1164750
  • Khan, H., Khan, U., & Khan, M. A. (2020). Causal nexus between economic complexity and FDI: Empirical evidence from time series analysis. The Chinese Economy, 53(5), 374-394. doi: 10.1080/10971475.2020.1730554
  • Kim, T., Duc Niem, L., & Mai, L. (2022). Economic complexity and economic development in ASEAN countries. International Economic Journal, 36(4), 556-568. doi: 10.1080/10168737.2022.2142643
  • Medlock, K. B., & Soligo, R. (2001). Economic development and end-use energy demand. The Energy Journal, 22(2), 77-105.
  • Narin, M., & Kutluay, D. (2013). Değişen küresel ekonomik düzen: BRIC, 3G ve N-11 ülkeleri. Ankara: Ankara Sanayi Odası Yayın Organı.
  • Numan, U., Ma, B., Aslam, M., Bedru, H. D., Jiang, C., & Sadiq, M. (2023). Role of economic complexity and energy sector in moving towards sustainability in the exporting economies. Energy Strategy Reviews, 45, 1-12. doi: 10.1016/j.esr.2022.101038
  • Osinubi, T., & Ajide, F. (2022). Foreign direct investment and economic complexity in emerging economies. Economic Journal of Emerging Markets, 14(2), 245-256. doi: 10.20885/ejem.vol14.iss2.art9
  • Pesaran, M. H. (2007). A simple panel unit root test in the presence of cross-section dependence. Journal of Applied Econometrics, 22(2), 265-312. doi: 10.1002/jae.951
  • Pesaran, M. H., Ullah, A., & Yamagata, T. (2008). A bias‐adjusted LM test of error cross‐section independence. The Econometrics Journal, 11(1), 105-127. doi: 10.1111/j.1368-423X.2007.00227.x
  • Pietronero, L., Cristelli, M., & Tacchella, A. (2013). New metrics for economic complexity: Measuring the intangible growth potential of countries. Plenary Conference of the Institute for New Economic Thinking'te sunulan bildiri. Hong-Kong.
  • Saad, M., Brahim, M., Schaffar, A., Guesmi, K., & Saad, R. (2022). Economic complexity, diversification and economic development: The strategic factors. Research in International Business and Finance, 64, 101840. doi: 10.1016/j.ribaf.2022.101840
  • Shahzad, U., Fareed, Z., Shahzad, F., & Shahzad, K. (2021). Investigating the nexus between economic complexity, energy consumption and ecological footprint for the United States: New insights from quantile methods. Journal of Cleaner Production, 279, 123806. doi: 10.1016/j.jclepro.2020.123806
  • Taghvaee, V. M., Nodehi, M., & Saboori, B. (2022). Economic complexity and CO2 emissions in OECD countries: Sector-wise Environmental Kuznets Curve hypothesis. Environmental Science and Pollution Research, 29(02), 1-11. doi: 10.1007/s11356-022-21491-5
  • Tatoğlu, F. Y. (2013). İleri panel veri analizi: Stata uygulamalı. İstanbul: Beta.
  • Uçar, M., Soyyiğit, S., & Nişancı, M. (2019). Ülkelerin iktisadi gelişmişlik ve iktisadi karmaşıklık düzeyleri arasındaki ilişki: G8 ülkeleri örneği. C.Ü. İktisadi ve İdari Bilimler Dergisi, 20(1), 138-148.
  • Uslu, K. (2014). Avrupa Birliği’nde enerji ve politikaları. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi, 19(1), 155-172.
  • Yaprakli, S., & Özden, E. (2021). The effect of sustainable development on economic complexity in OECD countries. International and Multidisciplinary Journal of Social Sciences, 10(2), 51-80.
  • Zhu, S., & Li, R. (2017). Economic complexity, human capital and economic growth: Empirical research based on cross-country panel data. Applied Economics, 49(38), 3815-3828. doi: 10.1080/00036846.2016.1270413

EKONOMİK KARMAŞIKLIK DÜZEYİNİN ENERJİ TÜKETİMİ VE EKONOMİK BÜYÜME İLE İLİŞKİSİ: YATAY KESİT BAĞIMLILIĞI ALTINDA PANEL VERİ ANALİZİ

Year 2023, Volume: 24 Issue: 4, 131 - 152, 27.12.2023

Mehmet Mert Türk

https://doi.org/10.53443/anadoluibfd.1255916

Abstract

Ekonomik karmaşıklık ülkelerin sahip olduğu üretim tekniği, beşerî sermaye ve rekabet gücü gibi kavramları içine alan değerler kümesini ifade etmektedir. Uluslararası ticaretin rekabetçi dinamik yapısı ülkeleri ürün kompozisyonlarında çeşitliliğe ittiği kadar üretilen ürünün ülkelere öznel getiriler de sunmasını gerekli kılmaktadır. Bu yönüyle ekonomik büyümede önemli bir gösterge olan ihracat ekonomik karmaşıklık kavramı ile etkileşim halindedir. Ülke çıktılarında birincil ürünlerden sofistike ürün üretimine geçmek, gerektirdiği teknolojik düzey açısından enerji maliyeti başta olmak üzere çeşitli maliyet unsurlarını da beraberinde getirmektedir. Bu doğrultuda BRICS-T (Brezilya, Rusya, Hindistan, Çin, Güney Afrika, Türkiye) grubu için 2000-2020 yıllarına ait veriler ile ekonomik karmaşıklık, birincil enerji tüketimi ve iktisadi büyüme arasındaki ilişki yatay kesit bağımlılığını dikkate alan panel veri analizi metodu kullanılarak test edilmiştir. Modele uygulanan Emirmahmutoglu ve Kose (2011) nedensellik testi neticesinde ekonomik karmaşıklıktan enerji tüketimine doğru tespit edilen güçlü nedensellik, enerjide dışa bağımlı olan ülkelerin ekonomik büyüme stratejilerinde ürün sofistikasyonu gerçekleşmelerini yerine getirmede güçlükler yaşayacağı tespit edilmiştir.

Keywords

Ekonomik Karmaşıklık Birincil Enerji Tüketimi Ekonomik Büyüme Panel Nedensellik Analizi

References

  • Adam, A., Garas, A., Katsaiti, M.-S., & Lapatinas, A. (2021). Economic complexity and jobs: An empirical analysis. Economics of Innovation and New Technology, 32(1), 1-28. doi: 10.1080/10438599.2020.1859751
  • Bayar, İ. (2022). Ekonomik karmaşıklık endeksi ve ekonomik büyüme: CIVETS ülkelerinden ampirik kanıtlar. Uluslararası İktisadi ve İdari İncelemeler Dergisi, 36, 237-251. doi: 10.18092/ulikidince.1052678
  • Boğa, S. (2019). Ekonomik karmaşıklık seviyesinin ekonomik büyüme üzerine etkisi: Geçiş ükeleri için bir panel zaman serisi analizi. Akademik Hassasiyetler, 6(12), 357-386.
  • Breitenbach, M. C., Chisadza, C., & Clance, M. (2022). The Economic Complexity Index (ECI) and output volatility: High vs. low income countries. The Journal of International Trade & Economic Development, 31(4), 566-580. doi: 10.1080/09638199.2021.1995467
  • Chakravarty, D., & Mandal, S. K. (2016). Estimating the relationship between economic growth and environmental quality for the brics economies—A dynamic panel data approach. The Journal of Developing Areas, 50(5), 119-130.
  • Çeştepe, H., & Çağlar, O. (2017). Ürün sofistikasyonu ve ekonomik büyüme ilişkisi: Panel veri analizi. Uluslararası Yönetim İktisat ve İşletme Dergisi, 13(13), 992-1000.
  • Doğan, B., Balsalobre-Lorente, D., & Nasir, M. A. (2020). European commitment to COP21 and the role of energy consumption, FDI, trade and economic complexity in sustaining economic growth. Journal of Environmental Management, 273, 2-10. doi: 10.1016/j.jenvman.2020.111146
  • Doru, Ö. (2022). Türkiye’de ekonomik karmaşıklık endeksi (ECI) ve doğrudan yabancı yatırım ilişkisi. Artuklu Kaime Uluslararası İktisadi ve İdari Araştırmalar Dergisi, 5(2), 235-251. doi: 10.55119/artuklu.1200656
  • Emirmahmutoglu, F., & Kose, N. (2011). Testing for granger causality in heterogeneous mixed panels. Economic Modelling, 28(3), 870-876. doi: 10.1016/J.ECONMOD.2010.10.018
  • Fortunato, P., & Razo, C. (2014). Export sophistication, growth and the middle-income trap. J. M. Salazar-Xirinachs, I. Nübler ve R. Kozul-Wright (Editörler), Transforming economies–making industrial policy work for growth, jobs and development (ss. 267-287) içinde. Geneva: International Labour Organization.
  • Gozgor, G. (2018). A new approach to the renewable energy-growth nexus: Evidence from the USA. Environmental Science and Pollution Research, 25(17), 16590-16600. doi: 10.1007/s11356-018-1858-9
  • Hartmann, D., Guevara, M. R., Jara-Figueroa, C., Aristarán, M., & Hidalgo, C. A. (2017). Linking economic complexity, institutions and income inequality. World Development, 93, 75-93. doi: 10.1016/j.worlddev.2016.12.020
  • Harvard Growth Lab. (t.y.). Country & product complexity rankings. The Atlas of Economic Complexity website: https://atlas.cid.harvard.edu/rankings
  • Hausmann, R., Hidalgo, C. A., Bustos, S., Coscia, M., Chung, S., Jimenez, J., … Yildirim, M. A. (2011). The atlas of economic complexity: Mapping paths to prosperity. Massachusetts: HKS Center for International Development and MIT Media Lab.
  • Hausmann, R., Hwang, J., & Rodrik, D. (2007). What you export matters. Journal of Economic Growth, 12(1), 1-25. doi: 10.1007/s10887-006-9009-4
  • Hidalgo, C. A., & Hausmann, R. (2009). The building blocks of economic complexity. Proceedings of the National Academy of Sciences, 106(26), 10570-10575. doi: 10.1073/pnas.0900943106
  • Karadaş, H. A., Koşaroğlu, Ş. M., & Sali̇hoğlu, E. (2017). Enerji tüketimi ve ekonomik büyüme. Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi, 18(1), 129-141.
  • Karasoy, A. (2022). Examining the globalization-economic complexity-financial development nexus in Turkey. Akademik Araştırmalar ve Çalışmalar Dergisi, 14, 485-499. doi: 10.20990/kilisiibfakademik.1164750
  • Khan, H., Khan, U., & Khan, M. A. (2020). Causal nexus between economic complexity and FDI: Empirical evidence from time series analysis. The Chinese Economy, 53(5), 374-394. doi: 10.1080/10971475.2020.1730554
  • Kim, T., Duc Niem, L., & Mai, L. (2022). Economic complexity and economic development in ASEAN countries. International Economic Journal, 36(4), 556-568. doi: 10.1080/10168737.2022.2142643
  • Medlock, K. B., & Soligo, R. (2001). Economic development and end-use energy demand. The Energy Journal, 22(2), 77-105.
  • Narin, M., & Kutluay, D. (2013). Değişen küresel ekonomik düzen: BRIC, 3G ve N-11 ülkeleri. Ankara: Ankara Sanayi Odası Yayın Organı.
  • Numan, U., Ma, B., Aslam, M., Bedru, H. D., Jiang, C., & Sadiq, M. (2023). Role of economic complexity and energy sector in moving towards sustainability in the exporting economies. Energy Strategy Reviews, 45, 1-12. doi: 10.1016/j.esr.2022.101038
  • Osinubi, T., & Ajide, F. (2022). Foreign direct investment and economic complexity in emerging economies. Economic Journal of Emerging Markets, 14(2), 245-256. doi: 10.20885/ejem.vol14.iss2.art9
  • Pesaran, M. H. (2007). A simple panel unit root test in the presence of cross-section dependence. Journal of Applied Econometrics, 22(2), 265-312. doi: 10.1002/jae.951
  • Pesaran, M. H., Ullah, A., & Yamagata, T. (2008). A bias‐adjusted LM test of error cross‐section independence. The Econometrics Journal, 11(1), 105-127. doi: 10.1111/j.1368-423X.2007.00227.x
  • Pietronero, L., Cristelli, M., & Tacchella, A. (2013). New metrics for economic complexity: Measuring the intangible growth potential of countries. Plenary Conference of the Institute for New Economic Thinking'te sunulan bildiri. Hong-Kong.
  • Saad, M., Brahim, M., Schaffar, A., Guesmi, K., & Saad, R. (2022). Economic complexity, diversification and economic development: The strategic factors. Research in International Business and Finance, 64, 101840. doi: 10.1016/j.ribaf.2022.101840
  • Shahzad, U., Fareed, Z., Shahzad, F., & Shahzad, K. (2021). Investigating the nexus between economic complexity, energy consumption and ecological footprint for the United States: New insights from quantile methods. Journal of Cleaner Production, 279, 123806. doi: 10.1016/j.jclepro.2020.123806
  • Taghvaee, V. M., Nodehi, M., & Saboori, B. (2022). Economic complexity and CO2 emissions in OECD countries: Sector-wise Environmental Kuznets Curve hypothesis. Environmental Science and Pollution Research, 29(02), 1-11. doi: 10.1007/s11356-022-21491-5
  • Tatoğlu, F. Y. (2013). İleri panel veri analizi: Stata uygulamalı. İstanbul: Beta.
  • Uçar, M., Soyyiğit, S., & Nişancı, M. (2019). Ülkelerin iktisadi gelişmişlik ve iktisadi karmaşıklık düzeyleri arasındaki ilişki: G8 ülkeleri örneği. C.Ü. İktisadi ve İdari Bilimler Dergisi, 20(1), 138-148.
  • Uslu, K. (2014). Avrupa Birliği’nde enerji ve politikaları. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi, 19(1), 155-172.
  • Yaprakli, S., & Özden, E. (2021). The effect of sustainable development on economic complexity in OECD countries. International and Multidisciplinary Journal of Social Sciences, 10(2), 51-80.
  • Zhu, S., & Li, R. (2017). Economic complexity, human capital and economic growth: Empirical research based on cross-country panel data. Applied Economics, 49(38), 3815-3828. doi: 10.1080/00036846.2016.1270413
There are 35 citations in total.

Details

Primary Language Turkish
Subjects Economics
Journal Section Araştırma Makalesi
Authors

Mehmet Mert Türk 0000-0002-0164-2131

Publication Date December 27, 2023
Submission Date February 24, 2023
Published in Issue Year 2023 Volume: 24 Issue: 4

Cite

APA Türk, M. M. (2023). EKONOMİK KARMAŞIKLIK DÜZEYİNİN ENERJİ TÜKETİMİ VE EKONOMİK BÜYÜME İLE İLİŞKİSİ: YATAY KESİT BAĞIMLILIĞI ALTINDA PANEL VERİ ANALİZİ. Anadolu Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi, 24(4), 131-152. https://doi.org/10.53443/anadoluibfd.1255916
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