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ANALYZING OF THE VALIDITY OF ENERGY-GROWTH HYPOTHESIS IN N-11 COUNTRIES

Year 2016, , 101 - 118, 29.07.2016
https://doi.org/10.15637/jlecon.141

Abstract

This study aims to determine which energy-growth hypothesis is valid in Next-11 countries. We
adopt a panel estimation techniques for the period of 1984-2010 to examine the possibility of growth,
conservative, feedback, or neutrality hypotheses for Next-11 countries. Firstly, second generat on unit
root test are used to invest gate stationarity properties of the variables because of the cross-sectional
dependence.Then a panel cointegrat on and panel causality approach are proposed to examine the
causal relationship between the variables. Finally, panel vector autoregress on model,impulse- response and variance decomposition analysis are applied using generalized moment methods.
The findings obtained from panel Granger causality test suggests that there is evidence of uni - directional causality between renewable energy consumption and economic growth in the short-term,
which is consistent with the growth hypothesis. It is also found that the responses of growth to a shock
of renewable energy consumption are positive. Since there is evidence indicating that renewable
energy consumption may trigger economic growth

References

  • ANDREWS, D.W.K. and LU, B., 2001, Consistent model and moment selection procedures for GMM estimation with application to dynamic panel data models. Journal of Econometrics, 101(1), 123-164.
  • ABRIGO, M. R.M. and LOVE, I., 2015, Estimation of panel vector autoregression in Stata: a package of programs. http://paneldataconference2015.ceu.hu/Program/Michael- Abrigo.pdf
  • AÏSSA, M.S., JEBLI, M.B. and YOUSSEF, S.B. 2014, Output, renewable energy consumption and trade in Africa. Energy Policy, 66, 11-18
  • AL-MULALI, U., FEREIDOUNI, H. G. and LEE JANICE, Y.M. 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.

ANALYZING OF THE VALIDITY OF ENERGY-GROWTH HYPOTHESIS IN N-11 COUNTRIES

Year 2016, , 101 - 118, 29.07.2016
https://doi.org/10.15637/jlecon.141

Abstract

This study aims to determine which energy-growth hypothesis is valid in Next-11 countries. We adopt a panel estimation techniques for the period of 1984-2010 to examine the possibility of growth, conservative, feedback, or neutrality hypotheses for Next-11 countries. Firstly, second generat on unit root test are used to invest gate stationarity properties of the variables because of the cross-sectional dependence.Then a panel cointegrat on and panel causality approach are proposed to examine the causal relationship between the variables. Finally, panel vector autoregress on model,impulse- response and variance decomposition analysis are applied using generalized moment methods. The findings obtained from panel Granger causality test suggests that there is evidence of uni - directional causality between renewable energy consumption and economic growth in the short-term, which is consistent with the growth hypothesis. It is also found that the responses of growth to a shock of renewable energy consumption are positive. Since there is evidence indicating that renewable energy consumption may trigger economic growth

References

  • ANDREWS, D.W.K. and LU, B., 2001, Consistent model and moment selection procedures for GMM estimation with application to dynamic panel data models. Journal of Econometrics, 101(1), 123-164.
  • ABRIGO, M. R.M. and LOVE, I., 2015, Estimation of panel vector autoregression in Stata: a package of programs. http://paneldataconference2015.ceu.hu/Program/Michael- Abrigo.pdf
  • AÏSSA, M.S., JEBLI, M.B. and YOUSSEF, S.B. 2014, Output, renewable energy consumption and trade in Africa. Energy Policy, 66, 11-18
  • AL-MULALI, U., FEREIDOUNI, H. G. and LEE JANICE, Y.M. 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.
There are 4 citations in total.

Details

Journal Section Articles
Authors

Ebru Çağlayan Akay

Zamira Oskonbaeva

Publication Date July 29, 2016
Published in Issue Year 2016

Cite

APA Çağlayan Akay, E., & Oskonbaeva, Z. (2016). ANALYZING OF THE VALIDITY OF ENERGY-GROWTH HYPOTHESIS IN N-11 COUNTRIES. Journal of Life Economics, 3(3), 101-118. https://doi.org/10.15637/jlecon.141