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THE INTERACTION BETWEEN NATURAL GAS ENERGY CONSUMPTION AND ECONOMIC GROWTH IN MIDDLE EAST COUNTRIES

Year 2018, Volume: 13 Issue: 1, 19 - 36, 01.06.2018
https://doi.org/10.19129/sbad.343

Abstract

The study aims to investigate the interaction between economic growth and natural gas energy consumption by including gross capital formation, trade in goods and services, and total labor which are the main determining factors of GDP growth.into a multivariable model in the Middle East Countries (United Arab Emirates, Iraq, Iran, Israel, Kuwait, Saudi Arabia, Syria, Oman, Jordan). For this purpose, panel data analysis was applied with annual data covering 1980-2014 period as econometric analysis. As a result of the analysis carried out using the xtpedroni command through the stata program, it has been found that the natural gas energy consumption has a positive impact on the Middle Eastern countries’ GDP growth in the long-run. The panel Granger causality test also show that there is a bi-directional Granger causality between natural gas energy consumption and GDP growth. Using this information, energy policy implementation of policy decision makers is important in terms of increasing economic effectiveness in the Middle East countries.

References

  • Adeniran O. (2009). Does energy consumption cause economic growth? An empirical evidence from Nigeria University of Dundee.
  • Amadeh H, Morteza G, Abbasifar Z. (2009). Causality relation between energy consumption and economic growth and employment in Iranian economy. Tahgighat-E-Eghtesadi; 44:1–38.
  • Apergis N, Payne JE. (2010). “Renewable energy consumption and economic growth: evidence from a panel of OECD countries”. Energy Policy;38:656–60.
  • Aqeel, A., Butt, M. S. (2001). “The relationship between energy consumption and economic growth in Pakistan”. Asia-Pacific Development Journal, 8(2), 101-110.
  • Balitskiy, S., Bilan, Y., Strielkowski, W., Štreimikienė, D. (2016). “Energy efficiency and natural gas consumption in the context of economic development in the European Union”. Renewable and Sustainable Energy Reviews, 55, 156-168.
  • Baltagi B. (2009). Econometric Analysis of Panel Data. John Wiley and Sons, Ltd.
  • Beaudreau, B. C. (2005). Engineering and economic growth. Structural Change and Economic Dynamics, 16(2), 211-220.
  • Berberoğlu, C. N. (1982). “Türkiye'nin Ekonomik Gelişmesinde Elektrik Enerjisi Sorunu”. Eskişehir İktisadi ve Ticari İlimler Akademisi Dergisi. 18(1): 1-19.
  • Bhattacharyya, S. C. (2011). Energy Economics: Concepts, Issues, Markets and Governance. Springer Science & Business Media.
  • Bildirici, M. E. Aykaç Alp, E. Ersin, O. O., Bozoklu, U. (2010). İktisatta Kullanılan Doğrusal Olmayan Zaman Serisi Yöntemleri, Istanbul, Türkmen Bookstore.
  • Bildirici, M. E., Bakirtas, T. (2014). “The relationship among oil, natural gas and coal consumption and economic growth in BRICTS (Brazil, Russian, India, China, Turkey and South Africa) countries”. Energy, 65, 134-144.
  • Bowerman, B. L., O'Connell, R. T. (1979). Time Series and Forecasting: An Applied Approach, Wadsworth. Inc. Belmont, CA, 94002.
  • Clement IAU. (2010). Cointegration and causality relationship between energy consumption and economic growth: further empirical evidence for Nigeria. Journal of Business Economics and Management;15:97–111.
  • Demir, F. (2010). Enerji Oyunu. Istanbul. Ayrım Publications.
  • Destek, M. A. (2016). “Natural gas consumption and economic growth: Panel evidence from OECD countries”. Energy, 114, 1007-1015.
  • Dogan, E. (2015). “Revisiting the relationship between natural gas consumption and economic growth in Turkey”. Energy Sources, Part B: Economics, Planning, and Policy, 10(4), 361-370.
  • Enders, W. (2004). Applied Econometric Time Series, by Walter. Technometrics, 46(2), 264.
  • Ewing BT, Sari R, Soytas U. (2007). “Disaggregate energy consumption and industrial output in the United States”. Energy Policy;35: 1274–81.
  • Fatai, K., Oxley, L., Scrimgeour, F. G. (2004). “Modelling the causal relationship between energy consumption and GDP in New Zealand, Australia, India, Indonesia, The Philippines and Thailand”. Mathematics and Computers in Simulation, 64(3), 431-445.
  • Fisher, D. E. (1990). “Fire and ice, the greenhouse effect, ozone depletion, and nuclear winter”. Canadian Geographic, 110, 80-80.
  • Ghali, K. H., El-Sakka, M. I. (2004). “Energy use and output growth in Canada: a multivariate cointegration analysis”. Energy economics, 26(2), 225-238.
  • Hendry, D. F. Pagan, A. R. ve Sargan, J. D. (1984). Dynamic specification. Handbook of econometrics, 2, 1023-1100.
  • Hu JL, Lin C. H. (2008). “Disaggregated energy consumption and GDP in Taiwan: a threshold cointegration analysis”. Energy Economics; 30: 2342–58.
  • IEA. International Energy Agency (2016). International Energy Outlook.
  • Isik C. (2010). “Natural gas consumption and economic growth in Turkey: abound test approach”. Energy Systems;1:441–56.
  • Kum H, Ocal O, Aslan A. (2012). “The relationship among natural gas energy consumption, capital and economic growth: bootstrap-corrected causality tests from G-7 countries”. Renewable and Sustainable Energy Reviews; 16: 2361–5.
  • Lee, C. C., Chang, C. P. (2005). “Structural breaks, energy consumption, and economic growth revisited: evidence from Taiwan”. Energy Economics, 27(6), 857-872.
  • Menyah, K., Wolde-Rufeal, Y. (2010). “Energy consumption, pollutants emissions and economic growth in South Africa”, Energy Consumption 32 (6): 1374–1382.
  • Ocal, O.,Aslan, A. (2013). “Renewable energy consumption–economic growth nexus in Turkey”. Renewable and Sustainable Energy Reviews, 28, 494-499.
  • OPEC. Organization of Petroleum Exporting Countries (2017). Annual Statistical Bulletin 2017.
  • Pedroni, P. (1999). “Critical values for cointegration tests in heterogeneous panels with multiple regressors”. Oxford Bulletin of Economics and statistics, 61(S1), 653-670.
  • Pedroni P. (2004). “Panel cointegration; asymptotic and finite sample properties of pooled time series tests with an application to the PPP hypothesis”. Econometric Theory; 20: 597-625.
  • Rafindadi, A. A., Ozturk, I. (2015). “Natural gas consumption and economic growth nexus: Is the 10th Malaysian plan attainable within the limits of its resource?”. Renewable and Sustainable Energy Reviews, 49, 1221-1232.
  • Reynolds D.B., Kolodziej M. (2008). “Former Soviet Union oil production and GDP decline: granger-causality and the multi-cycle Hubbert curve”. Energy Economics; 30:271–89.
  • Sari R, Ewing BT, Soytas U. (2008). “The relationship between disaggregate energy consumption and industrial production in the United States: an ARDL approach”. Energy Economics;30:2302–13.
  • Shahbaz, M., Lean, H. H. (2012). “Does financial development increase energy consumption? The role of industrialization and urbanization in Tunisia”. Energy policy, 40, 473-479.
  • Shahbaz, M., Arouri, M., Teulon, F. (2014). “Short-and long-run relationships between natural gas consumption and economic growth: Evidence from Pakistan”. Economic Modelling, 41, 219-226.
  • Shahbaz, M., Lean, H. H., Farooq, A. (2013). “Natural gas consumption and economic growth in Pakistan”. Renewable and Sustainable Energy Reviews, 18, 87-94.
  • Solarin, S. A., Ozturk, I. (2016). “The relationship between natural gas consumption and economic growth in OPEC members”. Renewable and Sustainable Energy Reviews, 58, 1348-1356.
  • Stern, David I. (2000). “A Multivariate Cointegration Analysis of the Role of Energy in the US Macroeconom”, Energy Economics, 22, 267-283.
  • Timmons, D. Harris, J. M., Roach, B. (2014). The economics of renewable energy. Global Development and Environment Institute, Tufts University, 52.
  • Yang. H.Y. (2000). A note on the causal relationship between energy and GDP in Taiwan.
  • Yu E S. H., Choi J. Y. (1985). “The causal relationship between energy and GNP: an international comparison”, Journal of Energy and Development, vol. 10, 249-272, October.
  • Yuan, J. H., Kang, J. G., Zhao, C. H., Hu, Z. G. (2008). “Energy consumption and economic growth: evidence from China at both aggregated and disaggregated levels”. Energy Economics, 30(6), 3077-3094.
  • Zahid A. (2008). “Energy-GDP relationship: a causal analysis for the five countries of South Asia”. Applied Econometrics and International Development; 1: 167–80.
  • Zamani M. (2007). “Energy consumption and economic activities in Iran”. Energy Economics; 29: 1135-40.

ORTA DOĞU ÜLKELERİNDE DOĞALGAZ ENERJİ TÜKETİMİ VE EKONOMİK BÜYÜME ARASINDAKİ ETKİLEŞİM

Year 2018, Volume: 13 Issue: 1, 19 - 36, 01.06.2018
https://doi.org/10.19129/sbad.343

Abstract

Çalışma veri temininde sıkıntı yaşanılmayan Orta Doğu ülkelerinde (Birleşik Arap Emirlikleri, Irak, İran, İsrail, Kuveyt, Suudi Arabistan, Suriye, Umman, Ürdün) GSYİH'nın büyümesindeki temel belirleyiciler olan brüt sabit sermaye oluşumu, mal ve hizmet ticareti ile toplam işgücünü çok değişkenli modele dahil ederek doğalgaz enerji tüketimi ve ekonomik büyüme arasındaki ilişkiyi araştırmayı amaçlamaktadır. Bu amaç doğrultusunda ekonometrik analiz olarak 1980-2014 dönemini içeren yıllık verilerle panel veri analizi uygulanmıştır. Stata programı aracılığıyla xtpedroni komutu kullanılarak gerçekleştirilen analiz sonucunda doğalgaz enerji tüketiminin uzun dönemde araştırılan Ortadoğu ülkelerinin GSYİH büyümesini olumlu yönde etkilediği bulgusuna ulaşılmıştır. Ayrıca yapılan panel Granger nedensellik testi doğalgaz enerji tüketimi ile GSYİH büyümesi arasında çift yönlü bir Granger nedensellik olduğunu da ortaya koymuştur. Politika karar vericilerin bu bilgileri kullanarak Ortadoğu ülkelerinde enerji politikaları uygulaması ekonomide etkinliğin sağlanması açısından önem arzetmetkedir

References

  • Adeniran O. (2009). Does energy consumption cause economic growth? An empirical evidence from Nigeria University of Dundee.
  • Amadeh H, Morteza G, Abbasifar Z. (2009). Causality relation between energy consumption and economic growth and employment in Iranian economy. Tahgighat-E-Eghtesadi; 44:1–38.
  • Apergis N, Payne JE. (2010). “Renewable energy consumption and economic growth: evidence from a panel of OECD countries”. Energy Policy;38:656–60.
  • Aqeel, A., Butt, M. S. (2001). “The relationship between energy consumption and economic growth in Pakistan”. Asia-Pacific Development Journal, 8(2), 101-110.
  • Balitskiy, S., Bilan, Y., Strielkowski, W., Štreimikienė, D. (2016). “Energy efficiency and natural gas consumption in the context of economic development in the European Union”. Renewable and Sustainable Energy Reviews, 55, 156-168.
  • Baltagi B. (2009). Econometric Analysis of Panel Data. John Wiley and Sons, Ltd.
  • Beaudreau, B. C. (2005). Engineering and economic growth. Structural Change and Economic Dynamics, 16(2), 211-220.
  • Berberoğlu, C. N. (1982). “Türkiye'nin Ekonomik Gelişmesinde Elektrik Enerjisi Sorunu”. Eskişehir İktisadi ve Ticari İlimler Akademisi Dergisi. 18(1): 1-19.
  • Bhattacharyya, S. C. (2011). Energy Economics: Concepts, Issues, Markets and Governance. Springer Science & Business Media.
  • Bildirici, M. E. Aykaç Alp, E. Ersin, O. O., Bozoklu, U. (2010). İktisatta Kullanılan Doğrusal Olmayan Zaman Serisi Yöntemleri, Istanbul, Türkmen Bookstore.
  • Bildirici, M. E., Bakirtas, T. (2014). “The relationship among oil, natural gas and coal consumption and economic growth in BRICTS (Brazil, Russian, India, China, Turkey and South Africa) countries”. Energy, 65, 134-144.
  • Bowerman, B. L., O'Connell, R. T. (1979). Time Series and Forecasting: An Applied Approach, Wadsworth. Inc. Belmont, CA, 94002.
  • Clement IAU. (2010). Cointegration and causality relationship between energy consumption and economic growth: further empirical evidence for Nigeria. Journal of Business Economics and Management;15:97–111.
  • Demir, F. (2010). Enerji Oyunu. Istanbul. Ayrım Publications.
  • Destek, M. A. (2016). “Natural gas consumption and economic growth: Panel evidence from OECD countries”. Energy, 114, 1007-1015.
  • Dogan, E. (2015). “Revisiting the relationship between natural gas consumption and economic growth in Turkey”. Energy Sources, Part B: Economics, Planning, and Policy, 10(4), 361-370.
  • Enders, W. (2004). Applied Econometric Time Series, by Walter. Technometrics, 46(2), 264.
  • Ewing BT, Sari R, Soytas U. (2007). “Disaggregate energy consumption and industrial output in the United States”. Energy Policy;35: 1274–81.
  • Fatai, K., Oxley, L., Scrimgeour, F. G. (2004). “Modelling the causal relationship between energy consumption and GDP in New Zealand, Australia, India, Indonesia, The Philippines and Thailand”. Mathematics and Computers in Simulation, 64(3), 431-445.
  • Fisher, D. E. (1990). “Fire and ice, the greenhouse effect, ozone depletion, and nuclear winter”. Canadian Geographic, 110, 80-80.
  • Ghali, K. H., El-Sakka, M. I. (2004). “Energy use and output growth in Canada: a multivariate cointegration analysis”. Energy economics, 26(2), 225-238.
  • Hendry, D. F. Pagan, A. R. ve Sargan, J. D. (1984). Dynamic specification. Handbook of econometrics, 2, 1023-1100.
  • Hu JL, Lin C. H. (2008). “Disaggregated energy consumption and GDP in Taiwan: a threshold cointegration analysis”. Energy Economics; 30: 2342–58.
  • IEA. International Energy Agency (2016). International Energy Outlook.
  • Isik C. (2010). “Natural gas consumption and economic growth in Turkey: abound test approach”. Energy Systems;1:441–56.
  • Kum H, Ocal O, Aslan A. (2012). “The relationship among natural gas energy consumption, capital and economic growth: bootstrap-corrected causality tests from G-7 countries”. Renewable and Sustainable Energy Reviews; 16: 2361–5.
  • Lee, C. C., Chang, C. P. (2005). “Structural breaks, energy consumption, and economic growth revisited: evidence from Taiwan”. Energy Economics, 27(6), 857-872.
  • Menyah, K., Wolde-Rufeal, Y. (2010). “Energy consumption, pollutants emissions and economic growth in South Africa”, Energy Consumption 32 (6): 1374–1382.
  • Ocal, O.,Aslan, A. (2013). “Renewable energy consumption–economic growth nexus in Turkey”. Renewable and Sustainable Energy Reviews, 28, 494-499.
  • OPEC. Organization of Petroleum Exporting Countries (2017). Annual Statistical Bulletin 2017.
  • Pedroni, P. (1999). “Critical values for cointegration tests in heterogeneous panels with multiple regressors”. Oxford Bulletin of Economics and statistics, 61(S1), 653-670.
  • Pedroni P. (2004). “Panel cointegration; asymptotic and finite sample properties of pooled time series tests with an application to the PPP hypothesis”. Econometric Theory; 20: 597-625.
  • Rafindadi, A. A., Ozturk, I. (2015). “Natural gas consumption and economic growth nexus: Is the 10th Malaysian plan attainable within the limits of its resource?”. Renewable and Sustainable Energy Reviews, 49, 1221-1232.
  • Reynolds D.B., Kolodziej M. (2008). “Former Soviet Union oil production and GDP decline: granger-causality and the multi-cycle Hubbert curve”. Energy Economics; 30:271–89.
  • Sari R, Ewing BT, Soytas U. (2008). “The relationship between disaggregate energy consumption and industrial production in the United States: an ARDL approach”. Energy Economics;30:2302–13.
  • Shahbaz, M., Lean, H. H. (2012). “Does financial development increase energy consumption? The role of industrialization and urbanization in Tunisia”. Energy policy, 40, 473-479.
  • Shahbaz, M., Arouri, M., Teulon, F. (2014). “Short-and long-run relationships between natural gas consumption and economic growth: Evidence from Pakistan”. Economic Modelling, 41, 219-226.
  • Shahbaz, M., Lean, H. H., Farooq, A. (2013). “Natural gas consumption and economic growth in Pakistan”. Renewable and Sustainable Energy Reviews, 18, 87-94.
  • Solarin, S. A., Ozturk, I. (2016). “The relationship between natural gas consumption and economic growth in OPEC members”. Renewable and Sustainable Energy Reviews, 58, 1348-1356.
  • Stern, David I. (2000). “A Multivariate Cointegration Analysis of the Role of Energy in the US Macroeconom”, Energy Economics, 22, 267-283.
  • Timmons, D. Harris, J. M., Roach, B. (2014). The economics of renewable energy. Global Development and Environment Institute, Tufts University, 52.
  • Yang. H.Y. (2000). A note on the causal relationship between energy and GDP in Taiwan.
  • Yu E S. H., Choi J. Y. (1985). “The causal relationship between energy and GNP: an international comparison”, Journal of Energy and Development, vol. 10, 249-272, October.
  • Yuan, J. H., Kang, J. G., Zhao, C. H., Hu, Z. G. (2008). “Energy consumption and economic growth: evidence from China at both aggregated and disaggregated levels”. Energy Economics, 30(6), 3077-3094.
  • Zahid A. (2008). “Energy-GDP relationship: a causal analysis for the five countries of South Asia”. Applied Econometrics and International Development; 1: 167–80.
  • Zamani M. (2007). “Energy consumption and economic activities in Iran”. Energy Economics; 29: 1135-40.
There are 46 citations in total.

Details

Primary Language English
Journal Section Research Article
Authors

Türker Şimşek

Publication Date June 1, 2018
Published in Issue Year 2018 Volume: 13 Issue: 1

Cite

APA Şimşek, T. (2018). THE INTERACTION BETWEEN NATURAL GAS ENERGY CONSUMPTION AND ECONOMIC GROWTH IN MIDDLE EAST COUNTRIES. Sosyal Bilimler Araştırmaları Dergisi, 13(1), 19-36. https://doi.org/10.19129/sbad.343
AMA Şimşek T. THE INTERACTION BETWEEN NATURAL GAS ENERGY CONSUMPTION AND ECONOMIC GROWTH IN MIDDLE EAST COUNTRIES. JSSR. June 2018;13(1):19-36. doi:10.19129/sbad.343
Chicago Şimşek, Türker. “THE INTERACTION BETWEEN NATURAL GAS ENERGY CONSUMPTION AND ECONOMIC GROWTH IN MIDDLE EAST COUNTRIES”. Sosyal Bilimler Araştırmaları Dergisi 13, no. 1 (June 2018): 19-36. https://doi.org/10.19129/sbad.343.
EndNote Şimşek T (June 1, 2018) THE INTERACTION BETWEEN NATURAL GAS ENERGY CONSUMPTION AND ECONOMIC GROWTH IN MIDDLE EAST COUNTRIES. Sosyal Bilimler Araştırmaları Dergisi 13 1 19–36.
IEEE T. Şimşek, “THE INTERACTION BETWEEN NATURAL GAS ENERGY CONSUMPTION AND ECONOMIC GROWTH IN MIDDLE EAST COUNTRIES”, JSSR, vol. 13, no. 1, pp. 19–36, 2018, doi: 10.19129/sbad.343.
ISNAD Şimşek, Türker. “THE INTERACTION BETWEEN NATURAL GAS ENERGY CONSUMPTION AND ECONOMIC GROWTH IN MIDDLE EAST COUNTRIES”. Sosyal Bilimler Araştırmaları Dergisi 13/1 (June 2018), 19-36. https://doi.org/10.19129/sbad.343.
JAMA Şimşek T. THE INTERACTION BETWEEN NATURAL GAS ENERGY CONSUMPTION AND ECONOMIC GROWTH IN MIDDLE EAST COUNTRIES. JSSR. 2018;13:19–36.
MLA Şimşek, Türker. “THE INTERACTION BETWEEN NATURAL GAS ENERGY CONSUMPTION AND ECONOMIC GROWTH IN MIDDLE EAST COUNTRIES”. Sosyal Bilimler Araştırmaları Dergisi, vol. 13, no. 1, 2018, pp. 19-36, doi:10.19129/sbad.343.
Vancouver Şimşek T. THE INTERACTION BETWEEN NATURAL GAS ENERGY CONSUMPTION AND ECONOMIC GROWTH IN MIDDLE EAST COUNTRIES. JSSR. 2018;13(1):19-36.


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