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Multivariate Granger Causality between Electricity Generation, Exports, Prices and Economic Growth in Turkey

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Author Info

  • Halil Altýntas

    (Erciyes University, Faculty of Economics and Administrative Sciences, Turkey)

  • Melike Kum

    (Erciyes University, Faculty of Economics and Administrative Sciences, Turkey)

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    Abstract

    This study is the first employing annual data for Turkey from 1970 to 2010 to examine the short and long-run causal relationship between economic growth, electricity generation, exports and prices in a multivariate model. According to the bounds test results, when electricity generation and economic growth are the dependent variable there are two cointegrating relationships. According to the results, long-run equilibrium relationship and long-term causality are found between economic growth, electricity generation, export and price. Hence, in the short-run, there are bi-directional causalities between economic growth- electricity generation, economic growth-export and electricity generation-export with feedback effect.

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    File URL: http://www.econjournals.com/index.php/ijeep/article/download/573/324
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    Bibliographic Info

    Article provided by Econjournals in its journal International Journal of Energy Economics and Policy.

    Volume (Year): 3 (2013)
    Issue (Month): Special ()
    Pages: 41 - 51

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    Handle: RePEc:eco:journ2:2013-04-6

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    Web page: http://www.econjournals.com

    Related research

    Keywords: Electricity generation; economic growth; bounds testing; Granger causality; Turkey;

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    Cited by:
    1. Shahbaz, Muhammad & Nasreen, Samia & Ling, Chong Hui & Sbia, Rashid, 2014. "Causality between trade openness and energy consumption: What causes what in high, middle and low income countries," Energy Policy, Elsevier, vol. 70(C), pages 126-143.

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