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How Globalization and Economic Growth Affect Energy Consumption: Panel Data Analysis in the Sample of Brazil, Russia, India, China Countries

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  • Buhari Dogan

    (Department of Economics, Faculty of Economics and Administrative Sciences, S leyman Demirel University, Turkey,)

  • Osman Deger

    (Department of Economics, Faculty of Economics and Administrative Sciences, S leyman Demirel University, Turkey.)

Abstract

This study analyzes the causality and cointegration correlation between the series using total energy consumption, economic growth, and globalization data of Brazil, Russia, India, China (BRIC) countries in 2000-2012 period. Unit roots of the series were extracted in empirical part in order to make them stationary. Then, Pedroni and Kao cointegration and Granger causality analysis panel were used. As a result of the cointegration analysis, it was observed that the series were cointegrated in the long-term. On the other hand, causality analysis results suggested a unidirectional causality correlation from total energy consumption to economic growth, and another unidirectional causality correlation from globalization to economic growth. Lastly, no causality correlation between energy consumption and globalization was found.

Suggested Citation

  • Buhari Dogan & Osman Deger, 2016. "How Globalization and Economic Growth Affect Energy Consumption: Panel Data Analysis in the Sample of Brazil, Russia, India, China Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 6(4), pages 806-813.
    • Handle: RePEc:eco:journ2:2016-04-18
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    More about this item

    Keywords

    Globalization; Economic Growth; Energy Consumption; Brazil; Russia; India; China;
    All these keywords.

    JEL classification:

    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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