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Energy Consumption and Economic Growth: Evidence from Post-Communist Countries

Author

Listed:
  • Uktam Umurzakov

    (Tashkent Institute of Irrigation and Agricultural Mechanization Engineers, Uzbekistan)

  • Bakhodir Mirzaev

    (Tashkent Institute of Irrigation and Agricultural Mechanization Engineers, Uzbekistan)

  • Raufhon Salahodjaev

    (Tashkent Institute of Irrigation and Agricultural Mechanization Engineers, Uzbekistan)

  • Arletta Isaeva

    (ERGO Analytics, Uzbekistan.)

  • Shakhnoza Tosheva

    (ERGO Analytics, Uzbekistan.)

Abstract

Current study aimed to explore the nexus between energy and economic growth in post-communist nations during 1995-2014. As an empirical model, the growth model is employed including economic complexity indicator as a measure of capabilities for exporting sophisticated products. We employ Pedroni's (1999) panel cointegration tests and Panel Dynamic OLS estimation to assess the long-term link between the variables. At 1% significance level, we confirm cointegration between energy consumption and economic growth. Panel Dynamic OLS results revealed that economic growth positively influences energy consumption in Post-Communist states. The Dumotrescu and Hurlin (2012) panel Granger causality test results discovered unidirectional causality running from economic growth to energy consumption. Economic growth causes energy consumption in post-communistic countries, confirming the conservation hypothesis.

Suggested Citation

  • Uktam Umurzakov & Bakhodir Mirzaev & Raufhon Salahodjaev & Arletta Isaeva & Shakhnoza Tosheva, 2020. "Energy Consumption and Economic Growth: Evidence from Post-Communist Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 59-65.
    • Handle: RePEc:eco:journ2:2020-06-8
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    2. Miguel Á. Tinoco-Zermeño, 2023. "Energy consumption, financial development, CO2 emissions, and economic growth in 23 developing economies," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 18(1), pages 1-24, Enero - M.
    3. Anggi Putri Kurniadi & Hasdi Aimon & Syamsul Amar, 2021. "Determinants of Biofuels Production and Consumption, Green Economic Growth and Environmental Degradation in 6 Asia Pacific Countries: A Simultaneous Panel Model Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 460-471.
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    7. Li, Houjian & Zhou, Deheng & Hu, Jiayu & Li, Junwen & Su, Mengying & Guo, Lili, 2023. "Forecasting the realized volatility of Energy Stock Market: A multimodel comparison," The North American Journal of Economics and Finance, Elsevier, vol. 66(C).
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    More about this item

    Keywords

    energy; growth; Post-Communist;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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