The impacts of different types of globalization on energy security risk: Can globalization be a remedy for the energy security risk of OECD countries?

This study analyzes the impact of globalization and its sub-dimensions on energy security risk for OECD countries. In our study, annual data of 26 OECD countries for the period 1980–2018 were used. Second generation panel data techniques were used as the methodology. The results of the analysis show that economic, political and aggregate globalization increases energy security risk, while social globalization is statistically insignificant. The Dumitrescu-Hurlin panel causality test results demonstrate that there is a unidirectional causality relationship between inflation and energy security risk, and a bidirectional causality relationship between economic globalization, social globalization, political globalization, aggregate globalization, GDP and Gross Fixed Capital Formation and energy security risk. The study also analyzed how the impact of globalization on energy security risk varies across countries. The results of the analysis reveals that there are significant differences in the direction, significance and coefficient size of the relationship across countries. These findings suggest that the effects of globalization on energy security risks vary across countries. Therefore, countries should develop policies to minimize energy security risks by taking into account their own dynamics.