The relationship between natural gas consumption and economic growth: Case of Caspian Basin

In the study, the effect of natural gas consumption on economic growth, natural gas reserves, production, consumption, exports and imports of countries are investigated in order to reveal their commercial importance. Also, the security of supply of natural gas used as a political pressure factor and some suggestions for solving this problem, energy relations with Turkey and the Turkish states in the Caspian Basin natural gas situation was investigated. In the study, Turkey and the Caspian Basin located in countries (Russia, Iran, Azerbaijan, Kazakhstan and Turkmenistan) natural gas consumption and the relationship between economic growth to give the gross domestic product, natural gas consumption, by including variables in the model, such as capital and labor natural gas energy consumption and The aim of this study is to investigate the relationship between economic growth. In the analysis made with the annual data, it was first examined whether there was a cross-sectional dependence between the countries by Breusch Pagan LM Test and it was concluded that there was a cross-sectional dependence between the units. As a result, the second generation panel unit root test, Pesaran CADF Unit Root Test, was applied to the variables. According to the results of the unit root test, the first order differences of the variables included in the analysis were found to be stable at 5% significance level. In the last stage of the analysis, Pairwise Dumitrescu Hurlin Panel Causality Test was used to determine the causality relationship between the variables included in the analysis. As a result of the test, a two-way Granger causality relationship was found between natural gas consumption which is the main subject of the study and real gross domestic product. In the light of the findings obtained in the analysis, it is important for policy-makers to make economic decisions in terms of ensuring efficiency and sustainability in the economy.