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BUSINESS AND ECONOMICS RESEARCH JOURNAL

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Article Information
Journal: Business and Economics Research Journal
Title of Article: The Causality Link Between Electricity Consumption and Economic Growth in Turkey: Evidence from ARDL Bounds Testing Procedure
Author(s): Ugur Korkut Pata, Harun Terzi
Volume: 8
Number: 1
Year: 2017
Page: 19-33
ISSN: 1309-2448
DOI Number: 10.20409/berj.2017126242
Abstract
Electricity consumption is regarded as an indicator of welfare in both developing and developed countries. In this study, the causality link between net electricity consumption and economic growth in the Turkish economy is investigated by the 55 annual observations covering the period from 1960 to 2014. According to the results of UVAR and ARDL analysis resolved with both AIC and SIC information criteria, there is a positive unidirectional and statistically significant causality moving from net electricity consumption to economic growth in the short/long run. The empirical results indicate that the energy led-growth hypothesis is valid for Turkey, that is growing net electricity consumption positively stimulates the economic growth in the short/long run.

Keywords: Electricity Consumption, Economic Growth, ARDL, Bounds Test, Turkey

JEL Classification: C22, Q43, Q48

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