The Relationship Between Electricity, Foreign Direct Investment and Economic Growth in Central Asian Countries

Abstract

The role of the energy sector in the economic

growth and development of countries is not

questionable. Thus, this sector process and

structure are very important. The renewable

energy resources are energies obtained from the

continuous energies occurring naturally. In the

Central Asian countries, the hydro electrical energy

is one of the renewable energy resources, and it

should be utilized by these countries to improve

this sector. Energy consumption is one of socialeconomic

development indicators. There are so

many literatures about the relationship between

energy consumption and economic growth. Unlike

previous literatures, in this study FDI has been added

as a third variable. In this study, whether or not FDI

increases the economic growth and then economic

growth increases energy consumption, will be

analyzed by using time series methods analysis.

Moreover, these relationships will be analyzed in five

Central Asian (Kazakhstan, Kyrgyzstan, Tajikistan,

Turkmenistan and Uzbekistan) countries during

period 1991 to 2014. In this study, stationarity of

series is formed and Johansen Cointegration test

is utilized to see whether or not series are moving

together in the long term.

Keywords

• Energy Consumption,Growth,FDI,Central Asia,Panel Causality

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