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Energy use, exports, imports and GDP: New evidence from the OECD countries

Authors: Hüseyin Kaya; Dinçer Dedeoğlu;

Energy use, exports, imports and GDP: New evidence from the OECD countries

Abstract

This paper aims to investigate the relationship between energy use-GDP, energy use-exports-trade and energy use-imports on aggregate level in the OECD countries. While the energy use-growth nexus is widely examined in the literature, studies on the energy use-trade nexus are very scarce. Thus, this study also serves to fill this gap by presenting a new research on the OECD countries. We employ the panel cointegration technique and use the Granger representation theorem to examine the presence of long-run relationship and the causality between pairs of variables. To investigate the presence of causality, several tests developed by Canning and Pedroni (2008) are used. We find that the pairs of energy use-GDP, energy use-exports and energy use-imports are cointegrated and there is two-way Granger causality between each pairs. We also estimate the long-run elasticities by employing panel dynamic ordinary least squares. The results suggest that the sign of long-run elasticity is positive for all pairs. Particularly, 1% increase in GDP, export and import causes almost 0.32%, 0.21% and 0.16% increase in energy use respectively.

  • BIP!
    Impact byBIP!
    citations
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    93
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 1%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Top 10%
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Top 10%
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Found an issue? Give us feedback
citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
93
Top 1%
Top 10%
Top 10%
bronze