The effect of nuclear energy production on current account deficit and economic growth: Panel data analysis

This study provides an assessment of the assets of nuclear energy production on economic growth and current account deficit. In today's world where energy security and sustainable economic development are increasing, nuclear energy production stands out as an alternative in the energy policies of countries. In this context, data from 28 countries, namely Argentina, The United States, Germany, The United Kingdom, Brazil, Bulgaria, the Czech Republic, China, Armenia, France, South Africa, India, the Netherlands, Spain, Sweden, Switzerland, Japan, Canada, South Korea, Hungary, Pakistan, Romania, Russia, Slovakia, Slovenia and Ukraine, are analyzed with panel data between 2000-2022. In the study, GUW panel cointegration test, cross-section dependency test, unit root tests (Harris-Tzavalis, Pesaran and Yamagata), Emirmahmutoğlu-Köse panel causality test and long-term coefficient estimation methods were used. The analysis results show that there is a positive and significant relationship between nuclear energy production and economic growth, however, its effect on the current account deficit varies by country. The study results show that the use of nuclear energy can both support macroeconomic stability and be a potential tool in balancing the current account deficit by reducing dependency on energy imports. In this context, it is emphasized that the economic effects of nuclear energy should be taken into account in the formation of energy policies. The findings are guiding for policy makers in terms of sustainable development goals and energy strategies.