An Empirical Analysis for Energy Consumption, Trade Openness and Economic Growth of OECD Countries

Öz

This study analyzes the relationship of causality between energy consumption, trade openness and economic growth for 24 OECD countries. In the study undertaken during 1971 to 2014, the cross section dependency and the homogeneity of slope coefficients were investigated. After determining the heterogeneity of the slope coefficients under the cross section dependency of the Konya (2006) causality test, it was analyzed against four different stages. i) The panel causality relationship between economic growth and energy consumption. ii) The panel causality relationship between economic growth and trade openness.  iii) The panel causality relationship between energy consumption and outward openness. iv) According to the results of panel causality analysis between energy consumption and trade openness to economic growth, it was found that unidirectional causality relationship between energy consumption and trade openness to economic growth in Canada, Chile, Iceland, Spain and Sweden.

Anahtar Kelimeler

• Economic Growth,Konya Causality Test,Energy Consumption,Trade Openness,OECD Countries

OECD Ülkelerinin Enerji Tüketimi, Ticaret Açıklığı ve Ekonomik Büyümesi Üzerine Ampirik Bir Analiz

Öz

Bu çalışmada, enerji tüketimi, dışa açıklık ve ekonomik büyüme arasındaki nedensellik ilişkisi 24 OECD ülkesi için analiz edilmiştir. 1971 ile 2014 dönemi kullanılan çalışmada, öncelikle yatay kesit bağımlılığı ve eğim katsayılarının homojenliği incelenmiştir. Konya (2006) nedensellik testinin ön koşulu olan yatay kesit bağımlılığı altında eğim katsayılarının heterojenliği tespit edildikten sonra, Konya (2006) nedensellik testi dört farklı aşamada değişkenler analiz edilmiştir. i) Ekonomik büyüme ile enerji tüketimi arasındaki panel nedensellik ilişki analiz edilmiştir. ii) Ekonomik büyüme ile dışa açıklık arasındaki panel nedensellik ilişkisi analiz edilmiştir. iii) Enerji tüketimi ile dışa açıklık arasındaki panel nedensellik ilişki incelenmiştir. iv) Enerji tüketimi ve dışa açıklık ile ekonomik büyüme arasındaki panel nedensellik ilişkisi analiz sonuçlarına göre, Kanada, Şili, İzlanda, İspanya ve İsveç ülkelerinde enerji tüketimi ve dışa açıklığın ekonomik büyümenin nedenseli olduğu tespit edilmiştir. 

Anahtar Kelimeler

• Ekonomik Büyüme,Konya Nedensellik Testi,Enerji Tüketimi,Dışa Açıklık,OECD Ülkeleri

Kaynakça

1. Abosedra, S., Shahbaz, M., and Sbia, R. (2015). The links between energy consumption, financial development, and economic growth in Lebanon: evidence from cointegration with unknown structural breaks. Journal of Energy, 1-15.
2. Acaravci, A., and Ozturk, I. (2010). Electricity consumption-growth nexus: evidence from panel data for transition countries. Energy Economics, 32(3), 604-608.
3. Adhikari, D., and Chen, Y. (2013). Energy consumption and economic growth: A panel cointegration analysis for developing countries. Review of Economics & Finance, 3, 68-80.
4. Akarca, A. T., and Long, T. V. (1980). On the relationship between energy and GNP: a reexamination. The Journal of Energy and Development, 5(2), 326-331.
5. Al-mulali, U., Fereidouni, H. G., and Lee, J. Y. (2014). Electricity consumption from renewable and non-renewable sources and economic growth: Evidence from Latin American countries. Renewable and Sustainable Energy Reviews, 30, 290-298.
6. Alshehry, A. S., and Belloumi, M. (2015). Energy consumption, carbon dioxide emissions and economic growth: The case of Saudi Arabia. Renewable and Sustainable Energy Reviews, 41, 237-247.
7. Apergis, N., and Payne, J. E. (2009). Energy consumption and economic growth: evidence from the Commonwealth of Independent States. Energy Economics, 31(5), 641-647.
8. Asafu-Adjaye, J. (2000). The relationship between energy consumption, energy prices and economic growth: time series evidence from Asian developing countries. Energy economics, 22(6), 615-625.

9. Aslan, A., Ocal, O., & Shahbaz, M. (2017). Energy Consumption–Trade Openness–Economic Growth Nexus in G-8 Countries. Cappadocia Academıc Review, 1(1), 71-97.
10. Belke, A., Dobnik, F., and Dreger, C. (2011). Energy consumption and economic growth: New insights into the cointegration relationship. Energy Economics, 33(5), 782-789.
11. Bowden, N., & Payne, J. E. (2010). Sectoral analysis of the causal relationship between renewable and non-renewable energy consumption and real output in the US. Energy Sources, Part B: Economics, Planning, and Policy, 5(4), 400-408.
12. Bozoklu, S., and Yilanci, V. (2013). Energy consumption and economic growth for selected OECD countries: Further evidence from the Granger causality test in the frequency domain. Energy Policy, 63, 877-881.
13. Bölük, G., and Mert, M. (2014). Fossil & renewable energy consumption, GHGs (greenhouse gases) and economic growth: evidence from a panel of EU (European Union) countries. Energy, 74, 439-446.
14. Breusch, T. S., and Pagan, A. R. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. The Review of Economic Studies, 239-253.
15. Chang, R., Kaltani, L., and Loayza, N. V. (2009). Openness can be good for growth: The role of policy complementarities. Journal of development economics, 90(1), 33-49.
16. Charfeddine, L., and Khediri, K. B. (2016). Financial development and environmental quality in UAE: Cointegration with structural breaks. Renewable and Sustainable Energy Reviews, 55, 1322-1335.
17. Cheng, B. S. (1999). Causality between energy consumption and economic growth in India: an application of cointegration and error-correction modeling. Indian Economic Review, 39-49.
18. Damette, O., and Seghir, M. (2013). Energy as a driver of growth in oil exporting countries?. Energy Economics, 37, 193-199.
19. Dritsakis, N., & Stamatiou, P. (2016). Trade openness and economic growth: A panel cointegration and causality analysis for the Newest EU Countries. Romanian Economic Journal, 18(59), 45-60.
20. Eggoh, J. C., Bangaké, C., and Rault, C. (2011). Energy consumption and economic growth revisited in African countries. Energy Policy, 39(11), 7408-7421.
21. Erol, U., and Yu, E. S. (1987). On the causal relationship between energy and income for industrialized countries. The Journal of Energy and Development, 113-122.
22. Esso, L. J. (2010). Threshold cointegration and causality relationship between energy use and growth in seven African countries. Energy Economics, 32(6), 1383-1391.
23. Gries, T., and Redlin, M. (2012). Trade openness and economic growth: a panel causality analysis. In International Conferences of RCIE, KIET, and APEA, March, 16-18.
24. Gries, T., Kraft, M., and Meierrieks, D. (2011). Financial deepening, trade openness and economic growth in Latin America and the Caribbean. Applied Economics, 43(30), 4729-4739.
25. Gurgul, H., and Lach, Ł. (2012). The electricity consumption versus economic growth of the Polish economy. Energy Economics, 34(2), 500-510.
26. Habibi, F. (2015). Does Trade Openness Influence Economic Growth. International Journal of Economics and Business Administration, 1(2), 120-127.
27. Hye, Q. M. A. (2012). Long term effect of trade openness on economic growth in case of Pakistan. Quality & Quantity, 46(4), 1137-1149.
28. Idris, J., Yusop, Z., and Habibullah, M. S. (2016). Trade openness and economic growth: a causality test in panel perspective. International Journal of Business and Society, 17(2), 281-290.
29. Kahia, M., Aïssa, M. S. B., and Charfeddine, L. (2016). Impact of renewable and non-renewable energy consumption on economic growth: New evidence from the MENA Net Oil Exporting Countries (NOECs). Energy, 116, 102-115.
30. Kim, D. H. (2011). Trade, growth and income. The Journal of International Trade & Economic Development, 20(5), 677-709.
31. Kónya, L. (2006). Exports and growth: Granger causality analysis on OECD countries with a panel data approach. Economic Modelling, 23(6), 978-992.
32. Kraft, J., & Kraft, A. (1978). On the relationship between energy and GNP. The Journal of Energy and Development, 401-403.
33. Menegaki, A. N. (2011). Growth and renewable energy in Europe: a random effect model with evidence for neutrality hypothesis. Energy Economics, 33(2), 257-263.
34. Menyah, K., and Wolde-Rufael, Y. (2010). CO 2 emissions, nuclear energy, renewable energy and economic growth in the US. Energy Policy, 38(6), 2911-2915.
35. Mohammadi, H., and Parvaresh, S. (2014). Energy consumption and output: Evidence from a panel of 14 oil-exporting countries. Energy Economics, 41, 41-46.
36. Narayan, P. K., and Smyth, R. (2008). Energy consumption and real GDP in G7 countries: new evidence from panel cointegration with structural breaks. Energy Economics, 30(5), 2331-2341.
37. Odhiambo, N. M. (2009). Energy consumption and economic growth nexus in Tanzania: An ARDL bounds testing approach. Energy Policy, 37(2), 617-622.
38. Ouedraogo, N. S. (2013). Energy consumption and economic growth: Evidence from the economic community of West African States (ECOWAS). Energy economics, 36, 637-647.
39. Payne, J. E. (2011). On biomass energy consumption and real output in the US. Energy Sources, Part B: Economics, Planning, and Policy, 6(1), 47-52.
40. Pesaran, M. H., and Yamagata, T. (2008). Testing slope homogeneity in large panels. Journal of Econometrics, 142(1), 50-93.
41. Pesaran, M. H., (2004). General Diagnostic Tests for Cross Section Dependence in Panels. Cambridge Working Papers in Economics no. 435. University of Cambridge.
42. Pesaran, M. H., Ullah, A., and Yamagata, T. (2008). A bias‐adjusted LM test of error cross‐section independence. The Econometrics Journal, 11(1), 105-127.
43. Romer, P. M. (1987). Growth based on increasing returns due to specialization. The American Economic Review, 77(2), 56-62.
44. Sadorsky, P. (2009). Renewable energy consumption and income in emerging economies. Energy policy, 37(10), 4021-4028.
45. Sadorsky, P. (2012). Energy consumption, output and trade in South America. Energy Economics, 34(2), 476-488.
46. Salahuddin, M., and Gow, J. (2014). Economic growth, energy consumption and CO 2 emissions in Gulf Cooperation Council countries. Energy, 73, 44-58.
47. Seetanah, B., Matadeen, J., and Matadeen, J. (2012). Trade openness and economic performance: an African persepctive. Journal of Economics and Developments, 3(2), 8-23.
48. Shahbaz, M., Nasreen, S., Ling, C. H., and Sbia, R. (2014). Causality between trade openness and energy consumption: What causes what in high, middle and low income countries. Energy policy, 70, 126-143.
49. Shahbaz, M., Tang, C. F., and Shabbir, M. S. (2011). Electricity consumption and economic growth nexus in Portugal using cointegration and causality approaches. Energy policy, 39(6), 3529-3536.
50. Soytas, U., and Sari, R. (2006). Energy consumption and income in G-7 countries. Journal of Policy Modeling, 28(7), 739-750.
51. Soytas, U., Sari, R., and Ewing, B. T. (2007). Energy consumption, income, and carbon emissions in the United States. Ecological Economics, 62(3), 482-489.
52. Suleiman, S. H., and Suleiman, N. N., (2017), Trade Openness and Economic Growth in East African Community (EAC) Member Countries, Journal of Economics and Sustainable Development, 8(20), 161-169.
53. Swamy, P. A. (1970). Efficient inference in a random coefficient regression model. Econometrica: Journal of the Econometric Society, 311-323.
54. Tiwari, A. K. (2011). A structural VAR analysis of renewable energy consumption, real GDP and CO2 emissions: evidence from India. Economics Bulletin, 31(2), 1793-1806.
55. Tugcu, C. T., Ozturk, I., and Aslan, A. (2012). Renewable and non-renewable energy consumption and economic growth relationship revisited: evidence from G7 countries. Energy economics, 34(6), 1942-1950.
56. Vamvakidis, A. (2002). How robust is the growth-openness connection? Historical evidence. Journal of Economic Growth, 7(1), 57-80.
57. Yanikkaya, H. (2003). Trade openness and economic growth: a cross-country empirical investigation. Journal of Development economics, 72(1), 57-89.
58. Zellner, A., 1962. An efficient method of estimating seemingly unrelated regressions and tests for aggregation bias. J. Am. Stat. Ass. 57, 348–368.
59. Zeren, F., and Ari, A. (2013). Trade openness and economic growth: a panel causality Test. International journal of business and social science, 4(9), 317-324.