The Undeniable Role of Energy in the Global Economy: An ARDL Analysis on Turkey
Chapter from the book: Acar, S. & Çelik, S. & Künç, S. (eds.) 2024. Global Economy and Business: Future Trends.

Ömer Yılmaz
Gaziantep University

Synopsis

Economic growth is recognized as one of the most important macroeconomic indicators for countries. One of the important factors for economic growth, which has many driving forces, is energy. The fact that there are many studies in the literature in recent years trying to explain the relationship between economic growth and energy consumption makes the issue more important. In this study, the impact of energy consumption on economic growth is analyzed by ARDL analysis method for the Turkish economy with data for the period 1974-2023. Firstly, ADF and PP unit root tests were utilized to determine the stationarity levels of the variables. After both variables were stationary at I(1) level in the unit root tests, ARDL analysis was started and no problem was found in all diagnostic tests. There is a positive and significant relationship between energy consumption and economic growth. This result emphasizes that energy consumption is important for economic growth in the Turkish economy, but it is more important for a more efficient and effective sustainable economic growth if Turkey's dependence on foreign energy is reduced.

How to cite this book

Yılmaz, Ö. (2024). The Undeniable Role of Energy in the Global Economy: An ARDL Analysis on Turkey. In: Acar, S. & Çelik, S. & Künç, S. (eds.), Global Economy and Business: Future Trends. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub565.c2521

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Published

December 26, 2024

DOI