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The Energy Consumption and Economic Growth in the E7 Countries: Cointegration in Panel Data with Structural Breaks

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  • Buhari DOĞAN

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

  • Osman DEĞER

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

Abstract

Nowadays, the energy factor has become one of the most basic inputs for production. Especially the technological developments, the increase in the product range, the development of international trade and population growth have boosted the demand for energy to a great extent. The relationship between energy and economic growth is an important indicator for the direction of economic policies. In this context, this paper aims at examining the relationship between total energy consumption and economic growth in the E7 countries (Brazil, China, Indonesia, India, Mexico, Russia and Turkey) by using data for the 1990-2016 period. The results of the cointegration analysis with structural breaks suggest that the series move together in the long term. As a result of the analysis, a 1% increase in energy consumption leads to 0.123% increase in economic growth, based on the overall figures of the panel.

Suggested Citation

  • Buhari DOĞAN & Osman DEĞER, 2018. "The Energy Consumption and Economic Growth in the E7 Countries: Cointegration in Panel Data with Structural Breaks," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 63-75, December.
    • Handle: RePEc:rjr:romjef:v::y:2018:i:1:p:63-75
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    Cited by:

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    2. Alexandra-Anca PURCEL, 2020. "Developing States and the Green Challenge. A Dynamic Approach," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 173-193, July.
    3. Ayobami Abayomi Popoola & Hangwelani Hope Magidimisha, 2019. "Rural Energy Conditions in Oyo State: Present and Future Perspectives on the Untapped Resources," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 419-432.
    4. Mohammed Musah & Yusheng Kong & Isaac Adjei Mensah & Stephen Kwadwo Antwi & Mary Donkor, 2021. "The connection between urbanization and carbon emissions: a panel evidence from West Africa," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(8), pages 11525-11552, August.
    5. Alexandra-Anca Purcel, 2020. "Developing states and the green challenge. A dynamic approach," Post-Print hal-03182341, HAL.

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    More about this item

    Keywords

    energy; economic growth; panel cointegration; E7 countries;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative

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