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The Relationship between Energy Consumption and Economic Growth: Evidence from Azerbaijan

Author

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  • Shahriyar Mukhtarov

    (Department of Economics and Management, Khazar University, Mehseti Str. 41, Baku, Azerbaijan, International Graduate and Doctorate Center, Azerbaijan State University of Economics (UNEC), Istiqlaliyyat Str. 6, Baku, Azerbaijan, Department of World Economy, Baku Engineering University, Hasan Aliyev 120, Khirdalan, Azerbaijan)

  • Jeyhun I. Mikayilov

    (King Abdullah Petroleum Studies and Research Center, PO Box 88550, Riyadh 11672, Saudi Arabia)

  • Vüqar Ýsmayýlov

    (Department of Public Administration, Azerbaijan Technology University, Shah Ismayil Hatai ave., 103, Ganja, Azerbaijan)

Abstract

The study investigates the causal relationship between energy consumption and economic growth in Azerbaijan using annual data covering the period from 1990 to 2015. We used Toda-Yamamoto causality test framework of vector autoregressive (VAR) model to test causal relationship between the variables. The results of this test show that there is bidirectional causality between energy consumption and economic growth. Findings of the study might be useful tool for the similar economies to give appropriate energy related policy decisions.

Suggested Citation

  • Shahriyar Mukhtarov & Jeyhun I. Mikayilov & Vüqar Ýsmayýlov, 2017. "The Relationship between Energy Consumption and Economic Growth: Evidence from Azerbaijan," International Journal of Energy Economics and Policy, Econjournals, vol. 7(6), pages 32-38.
  • Handle: RePEc:eco:journ2:2017-06-5
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    References listed on IDEAS

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    More about this item

    Keywords

    energy consumption; economic growth; Toda-Yamamoto causality test; Azerbaijan;

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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