The relationship between energy consumption and economic growth: time series analysis for Turkey 1972-2017

The interaction between energy consumption and economic growth in Turkey is investigated in this study by using a time-series analysis. In the analysis, it is used the Augmented Dickey-Fuller (ADF) unit root test for stationarity of series, Engle-Granger Cointegration test for long-run relationships of series, Error Correction Mechanism for short-run relationships and Granger Causality Test for the Causality Relationship between series. The econometric analysis shows that the increase in energy consumption is positively influenced by economic growth only in the short run. Long run energy consumption is related to factors other than growth. However, the results of Granger Causality Test reveal that there is a unidirectional causality relationship between energy consumption and economic growth, from energy consumption to economic growth.