Analyzing Energy Consumption and GDP Nexus Using Maximum Entropy Bootstrap: The Case of Turkey
AbstractWe employ a maximum entropy bootstrap based framework to analyze the energy consumption and real GDP nexus between 1950 and 2006 in Turkey. Our approach provides more accurate inference in comparison to conventional hypothesis tests based on asymptotic theory. It also avoids preliminary testing and shape-destroying transformations such as differencing and detrending. The bivariate analysis as well as a multivariate framework controlling for exchange rate and oil prices shows no evidence of a causal relation. Our results are robust to both the number of lags and the time period chosen. We also perform a cointegration analysis of the data and point out a common misunderstanding in the literature regarding the concept of causation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by TOBB University of Economics and Technology, Department of Economics in its series Working Papers with number 1103.
Date of creation: Jun 2011
Date of revision:
Other versions of this item:
- Yalta, A. Talha, 2011. "Analyzing energy consumption and GDP nexus using maximum entropy bootstrap: The case of Turkey," Energy Economics, Elsevier, vol. 33(3), pages 453-460, May.
- NEP-ALL-2011-06-11 (All new papers)
- NEP-ARA-2011-06-11 (MENA - Middle East & North Africa)
- NEP-CWA-2011-06-11 (Central & Western Asia)
- NEP-ENE-2011-06-11 (Energy Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Altinay, Galip & Karagol, Erdal, 2004. "Structural break, unit root, and the causality between energy consumption and GDP in Turkey," Energy Economics, Elsevier, vol. 26(6), pages 985-994, November.
- Halicioglu, Ferda, 2008.
"An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey,"
11457, University Library of Munich, Germany.
- Halicioglu, Ferda, 2009. "An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey," Energy Policy, Elsevier, vol. 37(3), pages 1156-1164, March.
- Vinod, H. D., 2004. "Ranking mutual funds using unconventional utility theory and stochastic dominance," Journal of Empirical Finance, Elsevier, vol. 11(3), pages 353-377, June.
- Jobert, Thomas & Karanfil, Fatih, 2007. "Sectoral energy consumption by source and economic growth in Turkey," Energy Policy, Elsevier, vol. 35(11), pages 5447-5456, November.
- Narayan, Paresh Kumar & Prasad, Arti, 2008. "Electricity consumption-real GDP causality nexus: Evidence from a bootstrapped causality test for 30 OECD countries," Energy Policy, Elsevier, vol. 36(2), pages 910-918, February.
- Halicioglu, Ferda, 2007. "Residential electricity demand dynamics in Turkey," Energy Economics, Elsevier, vol. 29(2), pages 199-210, March.
- Davidson, R. & Mackinnon, J.G., 1996.
"The Size Distorsion of Bootstrap Tests,"
96a15, Universite Aix-Marseille III.
- Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, vol. 55(2), pages 251-76, March.
- Hrishikesh D. Vinod & Javier Lopez-de-Lacalle, . "Maximum Entropy Bootstrap for Time Series: The meboot R Package," Journal of Statistical Software, American Statistical Association, vol. 29(i05).
- Soytas, Ugur & Sari, Ramazan, 2003. "Energy consumption and GDP: causality relationship in G-7 countries and emerging markets," Energy Economics, Elsevier, vol. 25(1), pages 33-37, January.
- James G. MacKinnon, 2007. "Bootstrap Hypothesis Testing," Working Papers 1127, Queen's University, Department of Economics.
- Karanfil, Fatih, 2009. "How many times again will we examine the energy-income nexus using a limited range of traditional econometric tools?," Energy Policy, Elsevier, vol. 37(4), pages 1191-1194, April.
- James G. MacKinnon, 2002. "Bootstrap inference in econometrics," Canadian Journal of Economics, Canadian Economics Association, vol. 35(4), pages 615-645, November.
- Erdal, Gülistan & Erdal, Hilmi & Esengün, Kemal, 2008. "The causality between energy consumption and economic growth in Turkey," Energy Policy, Elsevier, vol. 36(10), pages 3838-3842, October.
- Hrishikesh D. Vinod, 2010. "A New Solution to Time Series Inference in Spurious Regression Problems," Fordham Economics Discussion Paper Series dp2010-01, Fordham University, Department of Economics.
- Altinay, Galip & Karagol, Erdal, 2005. "Electricity consumption and economic growth: Evidence from Turkey," Energy Economics, Elsevier, vol. 27(6), pages 849-856, November.
- Karanfil, Fatih, 2008. "Energy consumption and economic growth revisited: Does the size of unrecorded economy matter?," Energy Policy, Elsevier, vol. 36(8), pages 3019-3025, August.
- Balcilar, Mehmet & Ozdemir, Zeynel Abidin & Arslanturk, Yalcin, 2010. "Economic growth and energy consumption causal nexus viewed through a bootstrap rolling window," Energy Economics, Elsevier, vol. 32(6), pages 1398-1410, November.
- Granger, C. W. J., 1988. "Some recent development in a concept of causality," Journal of Econometrics, Elsevier, vol. 39(1-2), pages 199-211.
- A. Talha Yalta, 2013. "Small Sample Bootstrap Inference of Level Relationships in the Presence of Autocorrelated Errors: A Large Scale Simulation Study and an Application in Energy Demand," Working Papers 1301, TOBB University of Economics and Technology, Department of Economics.
- Talha Yalta, A. & Cakar, Hatice, 2012.
"Energy consumption and economic growth in China: A reconciliation,"
Elsevier, vol. 41(C), pages 666-675.
- A. Talha Yalta & Hatice Cakar, 2012. "Energy Consumption and Economic Growth in China: A Reconciliation," Working Papers 1202, TOBB University of Economics and Technology, Department of Economics.
- Rohin Anhal, 2013. "Causality between GDP, Energy and Coal Consumption in India, 1970-2011: A Non-parametric Bootstrap Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 3(4), pages 434 - 446.
- A. Talha Yalta, 2013. "The Dynamics of Road Energy Demand and Illegal Fuel Activity in Turkey: A Rolling Window Analysis," Working Papers 1304, TOBB University of Economics and Technology, Department of Economics, revised Jul 2013.
- A. Yasemin Yalta, 2011. "New Evidence on FDI-Led Growth: The Case of China," Working Papers 1107, TOBB University of Economics and Technology, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ismail Saglam).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.