Share of Renewable Energy as Factors Affecting Economic Growth and Foreign Trade Balance
Abstract
Energy consumption is one of the important issues affecting various macroeconomic indicators of countries. Most countries in the world obtain the energy they need from non-renewable energy sources. However, due to the consumable nature of these resources and the fact that natural resources are not equally distributed to all countries of the world, countries have recently invested in this area and increased their investments in order to obtain energy from renewable energy sources. In this study, the effect of renewable energy consumption on economic growth and foreign trade balance was examined. Ten countries, which are among the countries that produce and consume the most renewable energy in the world, were included in the study. Panel data analysis was carried out using the data of these countries between 1995 and 2020. According to the results of the study, it has been determined that there is a two-way significant relationship between renewable energy consumption and foreign trade balance. A unit increase in foreign trade increases renewable energy consumption by 0.088. In other words, as the improve on the balance of trade in foreign trade decreases, renewable energy consumption also increases. Likewise,
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References
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