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Electricity–Growth Nexus in Turkey: The Importance Of Capital and Labor

Author

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  • Cem ISIK

    (Ataturk University)

  • Magdalena RADULESCU

    (University of Pitesti)

Abstract

The objective of the study is to examine the relationship between energy consumption and economic growth by including capital and labor as potential determinants of Cobb–Douglas production function in case of Turkey by using the auto-regressive distributed lag (ARDL) model and rolling window approach (RWA) over the period of 1980-2014. The results from this study confirm a co-integration relationship in the long run. There is a feedback effect between variables and electricity consumption; capital and labor positively impact on the economic growth. This results supports the policy recommendation for a better protection and conservation policy on energy consumption, labor and capital in Turkey in the future in order to achieve better economic growth rates.

Suggested Citation

  • Cem ISIK & Magdalena RADULESCU, 2017. "Electricity–Growth Nexus in Turkey: The Importance Of Capital and Labor," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(6), pages 230-244, June.
    • Handle: RePEc:rsr:supplm:v:65:y:2017:i:6:p:230-244
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    More about this item

    Keywords

    Cobb–Douglas production function; rolling window approach (RWA); the auto-regressive distributed lag (ARDL); electricity consumption; economic growth; labor and capital;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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