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Energy Use and Growth of Manufacturing Sector: Evidence from Turkey

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  • Idoko Ahmed Itodo
  • Shahrzad Safaeimanesh
  • Festus Victor Bekun

Abstract

This study investigates the relationship between Energy use and the growth of the Turkish Manufacturing Sector, using Vector Error Correction and Granger causality, between 1960 and 2015. The research found a long-run association among these variables. However, while the VEC granger causality test result suggests no causality running, either direction, from predetermined Energy Use to Growth in Manufacturing Sector, the Variance decomposition and impulse response tests suggested a positive causality, running from contemporaneous values Energy Use to current and future values of Growth in the Manufacturing Sector of Turkey. It is recommended that more investments be made in the energy sector to help sustain the current performance in the manufacturing sector.

Suggested Citation

  • Idoko Ahmed Itodo & Shahrzad Safaeimanesh & Festus Victor Bekun, 2017. "Energy Use and Growth of Manufacturing Sector: Evidence from Turkey," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 3(1), pages 88-96, March.
    • Handle: RePEc:khe:scajes:v:3:y:2017:i:1:p:88-96
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    Cited by:

    1. Idoko Ahmed Itodo & Ojonugwa Usman & Michael Maju Abu, 2017. "The Asymmetric Effect in the Volatility of the South African Rand," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 3(3), pages 47-53, September.
    2. Mary O. Agboola & Festus V. Bekun, 2019. "Does Agricultural Value Added Induce Environmental Degradation? Empirical Evidence from an Agrarian Country," CEREDEC Working Papers 19/040, Centre de Recherche pour le Développement Economique (CEREDEC).

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    More about this item

    Keywords

    Energy use; manufacturing sector; cointegration; vector error correction and Granger causality;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment

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