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The Relationship Between Electricity Consumption And Economic Growth In Oecd Countries: Panel Cointegration Analysis Under Cross-Sectional Dependence (Vzťah Medzi Spotrebou Elektrickej Energie A Hospodárskym Rastom V Štátoch Oecd: Panelová Kointegračná Analýza So Zohľadnením Prierezovej Závislosti)

Author

Listed:
  • Tuba Baskonus Direkci

    () (Faculty of Economics and Administrative Sciences, University of Gaziantep)

  • Tuncer Govdeli

    () (Faculty of Economics and Administrative Sciences, University of Gaziantep)

Abstract

In the present study, the relationship between electricity consumption and economic growth in 28 OECD countries for the period between 1980 and 2012 was investigated. Under cross-section dependence, electricity consumption and economic growth data were analyzed using second generation CADF and CIPS unit root tests and found to be stationary at first differences. Therefore, the cointegration relationship between the series was examined by using Durbin-Hausman test developed by Westerlund (2008). According to the empirical results, electricity consumption has a positive effect on the economic growth. (Predkladaná štúdia skúma vzťah medzi spotrebou elektrickej energie a hospodárskym rastom v 28 štátoch OECD v období 1980-2012. Pri zohľadnení prierezovej závislosti sa na analýzu údajov o spotrebe elektrickej energie a hospodárskom raste používajú testy jednotkového koreňa druhej generácie CADF a CIDS, pričom ich prvé diferencie sú stacionárne. Preto sa v ďalšom texte použil Westermanom (2008) vyvinutý Durbinov-Hausmanov test na preskúmanie kointegračného vzťahu medzi štatistickými radmi. Empirické výsledky poukazujú na fakt, že spotreba elektrickej energie má pozitívny vplyv na hospodársky rast.)

Suggested Citation

  • Tuba Baskonus Direkci & Tuncer Govdeli, 2015. "The Relationship Between Electricity Consumption And Economic Growth In Oecd Countries: Panel Cointegration Analysis Under Cross-Sectional Dependence (Vzťah Medzi Spotrebou Elektrickej Energie A Hospo," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzÅ¥ahov, vol. 13(4), pages 382-398.
  • Handle: RePEc:brv:journl:v:13:y:2015:i:4:p:382-398
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    References listed on IDEAS

    as
    1. Ali Acaravci & Ilhan Ozturk, 2012. "Electricity Consumption and Economic Growth Nexus: A Multivariate Analysis for Turkey," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(31), pages 246-257, February.
    2. Ciarreta, A. & Zarraga, A., 2010. "Economic growth-electricity consumption causality in 12 European countries: A dynamic panel data approach," Energy Policy, Elsevier, vol. 38(7), pages 3790-3796, July.
    3. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    4. Adom, Philip Kofi & Bekoe, William & Akoena, Sesi Kutri Komla, 2012. "Modelling aggregate domestic electricity demand in Ghana: An autoregressive distributed lag bounds cointegration approach," Energy Policy, Elsevier, vol. 42(C), pages 530-537.
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    More about this item

    Keywords

    electricity consumption; economic growth; cross-section dependence; panel unit roots; panel cointegration;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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