The impact of energy production on economic growth in Turkey

Energy is an input that must be used in the production process and is a service tool which humanity needs reaching a higher standard of living, seen as the basis for economic and social development. Turkey seeks new energy sources in recent years. Because Turkey has to solve the problem of the increasing demand for energy as a result of economic growth. In this study, the relation which is needed to be revealed between energy and economic growth has been examined theoretically and econometrically for policies applied to solve this problems. In the study, after the emprical researches made both in Turkey and in the world have been studied, the relationship among the production of electric energy, energy consumption, energy import and economic growth in Turkey between 1975-2010 has been examined applying Vector Autoregressive (VAR) Model. According to the findings, there is a tendency of causality from production of electric energy, consumption and imports to economic growth; from consumption of electric energy and imports to production of electric energy. It has been concluded that in the long run the most important variable influencing economic growth, apart from itself, is the consumption of electric energy and economic growth is expressed by the shockings of electric energy imports and production.