Relationship between energy consumption and economic growth: Panel data analysi̇s

This dissertation investigates the relationship between five different energy sources (natural gas, electricity, petroleum, renewable energy and total energy) and economic growth in OECD and non-OECD countries. For this purpose, firstly cross sectional dependency of the series and the panel on the was tested. The findings include cross sectional dependency in both the series and the panel. Therefore, it should be from the second generation unit root tests and cointegration test to be selected. In this context, the stationarity of the series was examined with Pesaran CIPS (2007) test. The homogeneity of the slope coefficients in the cointegration equations has been determined with the aid of the delta test developed by Pesaran and Yamagata (2008), after determining that the series are stationary at I(1) level. The longrun relationship for five models was examined by the Westerlund (2008) Durbin-H cointegration test. After finding the cointegration relation, the long term cointegration coefficients were analyzed by Common Correlated Effect (CCE). The obtained findings is that the energy consumption of run relationship between economic growth. In all the models used, the elasticity coefficient is positive and statistically significant. This situation matches both the expectations and the literature.