Skip to main content
SpringerLink
Log in

Natural gas consumption and economic growth in Turkey: a bound test approach

  • Original Paper
  • Published:
Energy Systems Aims and scope Submit manuscript

Abstract

This paper examines the role of natural gas consumption in the Turkish economic growth by using ARDL model over the period of 1977–2008. In the study, economic growth and natural gas consumption variables used for bound test approach in empirical analysis was different order of integration (I(0) and I(1)). The results show that the natural gas consumption positively impacts the economic growth of Turkey in the short-run and a negative relationship between the variables in long run.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  1. Akan, Y., Doğan, M., Işık, C.: The causality relationship between energy consumption and economic growth: the case of Turkey. Enerj. Piyas. Düzenleme Ank. 1(1), 101–120 (2010)

    Google Scholar 

  2. Akarca, A.T., Long, T.V.: On the relationship between energy and GNP: a reexamination. J. Energy Dev. 5, 326–331 (1980)

    Google Scholar 

  3. Altinay, G., Karagol, E.: Electricity consumption and economic growth: evidence from Turkey. Energy Econ. 27, 849–856 (2005)

    Article  Google Scholar 

  4. Banerjee, A., Galbraith, J., Hendry, D.: Co-Integration, Error Correction and the Econometric Analysis of Non-stationary Data. Oxford University Press, Oxford (1993)

    Book  MATH  Google Scholar 

  5. Banerjee, A., Dolado, J., Mestre, R.: Error-correction mechanism tests for co-integration in a single equation framework. J. Time Ser. Anal. 19, 267–283 (1998)

    Article  MathSciNet  MATH  Google Scholar 

  6. Bowden, N., Payne, J.E.: The causal relationship between U.S. energy consumption and real output: a disaggregated analysis. J. Policy Model. 31(2), 180–188 (2008)

    Article  Google Scholar 

  7. Chan, H.L., Lee, S.K.: Forecasting the demand for energy in China. Energy J. 17(1), 19–30 (1996)

    Google Scholar 

  8. Dickey, D.A., Fuller, W.A.: Distributions of the estimators for autoregressive time series with a unit root. J. Am. Stat. Assoc. 74, 427–431 (1979)

    Article  MathSciNet  MATH  Google Scholar 

  9. Dinca, C., Rousseaux, P., Badea, A.: A life cycle impact of the natural gas used in the energy sector in Romania. J. Clean. Prod. 15, 1451–1462 (2007)

    Article  Google Scholar 

  10. Enders, W.: Applied Econometric Time Series. Wiley, New York (1995)

    Google Scholar 

  11. Engle, R.F., Granger, C.W.J.: Co-integration and error correction: representation, estimation and testing. Econometrica 50, 987–1007 (1987)

    Article  MathSciNet  Google Scholar 

  12. Erbaykal, E.: Disaggregate energy consumption and economic growth: evidence from Turkey. Int. Res. J. Finance Econ. 20, 172–179 (2008)

    Google Scholar 

  13. Erdal, G., Erdal, H., Esengün, K.: The causality between energy consumption and economic growth in Turkey. Energy Policy 36(10), 3838–3842 (2008)

    Article  Google Scholar 

  14. Fosu, O.A.E., Magnus, F.J.: Bounds testing approach to cointegration: an examination of foreign direct investment trade and growth relationships. Am. J. Appl. Sci. 3(11), 2079–2085 (2006)

    Article  Google Scholar 

  15. Ghosh, S.: Electricity supply, employment and real GDP in India: evidence from cointegration and granger-causality tests. Energy Policy 37(8), 9926–2929 (2009)

    Article  Google Scholar 

  16. Granger, C.W.J.: Investigating causal relations by econometric models and cross-spectral methods. Econometrica 37, 424–438 (1969)

    Article  Google Scholar 

  17. Granger, C.W.J., Newbold, P.: Spurious regressions in econometrics. J. Econ. 2, 111–120 (1974)

    Article  MATH  Google Scholar 

  18. Gujaratı, D.N.: In: Şenesen, Ç.Ü., Şenesen, G.G. (eds.) Temel Ekonometri. Literatür Yayınları, İstanbul (1999)

    Google Scholar 

  19. Gujaratı, D.N.: Basic Econometrics, 4th edn., pp. 835–867. McGraw-Hill, New York (2004). Chap. 21

    Google Scholar 

  20. Halicioglu, F.: Residential electricity demand dynamics in Turkey. Energy Econ. 29(2), 199–210 (2007)

    Article  Google Scholar 

  21. Halicioglu, F.: An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey. Energy Policy 37, 1156–1164 (2009)

    Google Scholar 

  22. Jobert, T., Karanfil, F.: Sectoral energy consumption by source and economic growth in Turkey. Energy Policy 35, 5447–5456 (2007)

    Article  Google Scholar 

  23. Johansen, S.: Statistical analysis of co-integrating vectors. J. Econ. Dyn. Control 12, 231–254 (1988)

    Article  MathSciNet  MATH  Google Scholar 

  24. Johansen, S.: Cointegration in partial systems and the efficiency of single equation analysis. J. Econ. 52, 389–402 (1992)

    Article  MathSciNet  MATH  Google Scholar 

  25. Johansen, S.: Likelihood-Based Inference in Co-Integrated Vector Autoregressive Models. Oxford University Press, New York (1995)

    Book  Google Scholar 

  26. Johansen, S., Juselius, K.: Maximum likelihood estimation and inference on co-integration-with applications to the demand for money. Oxford Bull. Econ. Stat. 52, 169–210 (1990)

    Article  Google Scholar 

  27. Karanfil, F.: Energy consumption and economic growth revisited: does the size of unrecorded economy matter? Energy Policy 36(8), 3029–3035 (2008)

    Article  Google Scholar 

  28. Kilic, F.C.-A., Kaya, D.: Renew. Sustain. Energy Rev. 11, 1312–1320 (2007)

    Article  Google Scholar 

  29. Kraft, J., Kraft, A.: On the relationship between energy and GNP. J. Energy Dev. 3, 401–403 (1978)

    Google Scholar 

  30. Lee, C.C., Chang, C.P.: Energy consumption and GDP revisited: a panel analysis of developed and developing countries. Energy Econ. 29(6), 1206–1223 (2007)

    Article  MathSciNet  Google Scholar 

  31. Lee, C.C., Chang, C.P.: Energy consumption and economic growth in Asian economies: a more comprehensive analysis using panel data. Resour. Energy Econ. 30(1), 50–65 (2008)

    Article  Google Scholar 

  32. Lise, W., Montfort, K.V.: Energy consumption and GDP in Turkey: is there a co-integration relationship? Energy Econ. 29, 1166–1178 (2007)

    Article  Google Scholar 

  33. Murray, D.A., Nan, G.D.: A definition of the gross domestic product-electrification interrelationship. J. Energy Dev. 19, 275–283 (1996)

    Google Scholar 

  34. Narayan, P.K.: The government revenue and government expenditure nexus: empirical evidence from nine Asian countries. J. Asian Econ. 15(6), 1203–1216 (2004)

    Article  Google Scholar 

  35. Narayan, P.K.: Reformulating critical values for the bounds F-statictics approach to cointegration: an application to the tourism demand model for Fiji. Discussion Papers No. 02/04, Department of Economics, Monash University, Melbourne, Australia (2004)

  36. Narayan, P.K.: An econometric model of tourism demand and a computable general equilibrium analysis of the impact of tourism: the case of the Fiji Islands. Unpublished PhD Thesis, Department of Economics, Monash University, Melbourne, Australia (2004)

  37. Narayan, P.K.: The saving and investment nexus for China: evidence from cointegration tests. Appl. Econ. 37, 1979–1990 (2005)

    Article  Google Scholar 

  38. Narayan, P.K.: Examining the relationship between trade balance and exchange rate: the case of China’s trade with the USA. Appl. Econ. Lett. 13(8), 507–510 (2006)

    Article  Google Scholar 

  39. Narayan, S., Narayan, P.K.: Determinants of demand of Fiji’s exports: An empirical investigation. Dev. Econ. XVII-1, 95–112 (2004)

    Google Scholar 

  40. Narayan, P.K., Prasad, A.: Electricity consumption–real GDP causality nexus: evidence from a bootstrapped causality test for 30 OECD countries. Energy Policy 36, 910–918 (2008)

    Article  Google Scholar 

  41. Narayan, P.K., Singh, B.: The electricity consumption and GDP nexus dynamic Fiji Islands. Energy Econ. 29, 1141–1150 (2007)

    Article  Google Scholar 

  42. Narayan, P.K., Smyth, R.: Electricity consumption, employment and real income in Australia evidence from multivariate Granger causality tests. Energy Policy 33, 1109–1116 (2005)

    Article  Google Scholar 

  43. Nieh, C.C., Wang, Y.S.: ARDL approach to the exchange rate overshooting in Taiwan. Rev. Quant. Finance Account. 25, 55–71 (2005)

    Article  Google Scholar 

  44. Odhiambo, N.M.: Energy consumption and economic growth nexus in Tanzania: an ARDL bounds testing approach. Energy Policy 37(2), 617–622 (2009)

    Article  Google Scholar 

  45. Oh, W., Lee, K.: Energy consumption and economic growth in Korea: testing the causality relation. J. Policy Model. 26, 973–981 (2004)

    Article  Google Scholar 

  46. Ozturk, İ.: A literature survey on energy–growth nexus. Energy Policy 1(38), 340–349 (2010)

    Article  Google Scholar 

  47. Paul, S., Bhattacharya, R.N.: Causality between energy consumption and economic growth in India: a note on conflicting results. Energy Econ. 26, 977–983 (2004)

    Article  Google Scholar 

  48. Pattichis, C.A.: Price and income elasticities of disaggregated import demands: results from UECMs and an application. Appl. Econ. 31, 1061–1071 (1999)

    Article  Google Scholar 

  49. Pesaran, H.M., Pesaran, B.: Microfit 4.0, Interactive Economic Analysis. Oxford University Press, Oxford (1997)

    Google Scholar 

  50. Pesaran, M.H., Shin, Y.: An autoregressive distributed lag modelling approach to cointegration analysis. In: Strom, S. (ed.) Econometrics and Economics Theory in the 20th Century: The Ragnar Frisch Centennial Symposium. Cambridge University Press, Cambridge (1999). Chap. 11

    Google Scholar 

  51. Pesaran, M.H., Shın, Y., Smıth, R.J.: Bounds testing approaches to the analysis of level relationships. J. Appl. Econ. 16, 289–326 (2001)

    Article  Google Scholar 

  52. Phillips, P., Perron, P.: Testing for a unit root in time series regression. Biometrica 75, 333–346 (1988)

    Article  MathSciNet  Google Scholar 

  53. Sims, C.A.: Money income and causality. Am. Econ. Rev. 62, 540–552 (1972)

    Google Scholar 

  54. Sovannroeun, S.: Estimating money demand function in Cambodia: ARDL approach. MPRA Paper No. 16274, posted 15 July 2009 (2008)

  55. Soytas, U., Sari, R.: Energy consumption and GDP: causality relationship in G-7 countries and emerging markets. Energy Econ. 25, 33–37 (2003)

    Article  Google Scholar 

  56. Soytas, U., Sari, R.: The relationship between energy and production: evidence from Turkish manufacturing industry. Energy Econ. 29(6), 1151–1165 (2007)

    Article  Google Scholar 

  57. Squalli, J.: Electricity consumption and economic growth: bounds and causality analyses for OPEC members. Energy Econ. 29, 1192–1205 (2007)

    Article  Google Scholar 

  58. Tang, C.F.: A re-examination of the relationship between electricity consumption and economic growth in Malaysia. Energy Policy 36(8), 3077–3085 (2008)

    Article  Google Scholar 

  59. Wei, W.: Study on the determinants of energy demand in China. J. Syst. Eng. Electron. 13(3), 17–23 (2002)

    Google Scholar 

  60. Wolde-Rufael, Y.: Disaggregated industrial energy consumption and GDP: the case of Shanghai, 1952–1999. Energy Econ. 26, 69–75 (2004)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Atatürk University, Erzurum, Turkey

    Cem Işik

Authors
  1. Cem Işik
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Cem Işik.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Işik, C. Natural gas consumption and economic growth in Turkey: a bound test approach. Energy Syst 1, 441–456 (2010). https://doi.org/10.1007/s12667-010-0018-1

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s12667-010-0018-1

Keywords

Search

Navigation