Research into relationship between renewable energy primary production and economic growth, labor force: EU-28 panel data analysis

The increase in the use of non-renewable energy sources in the world leads to an increase in prices, an increase in the emission problem and a depletion of resources. As a result, countries have turned to renewable energy sources. The thesis examined the contribution of primary production of renewable energy to economic growth and labor force. The purpose of this thesis is to investigate the contribution of the primary production of renewable energy to the economic growth and labor force of 28 member states of the European Union between 2006 and 2016 by using panel data analysis. In order to determine the relationships between the series, first of all, the stationary state was examined using unit root tests. Then, cointegration tests were used to test the existence of long-term relationships. As a result, there is a long-run relationship between economic growth and labor force with the primary production of renewable energy through models created using various variables in the EU-28 panel. The coefficients of the cointegration relationship were estimated by FMOLS. The contribution of renewable primary energy production to the economic and labor force was positive and statistically significant. The results of the analysis support the studies in the literature. Keywords: Renewable Energy Primary Production, European Union, Economic Growth, Labor Force, Panel Data Analysis