Akademik Məlumat İdarəetmə Sistemi
Journal of Security and Sustainability Issues, vol.4, no.2, pp.123-130, 2014 (Scopus)
Our paper tackles the issue of the European energy security and economic growth. Specifically, itevaluates the relationship between natural gas consumption and economic growth in the European Union (EU).Channels along which natural gas is supplied to the EU energy markets yield dependence from the Russian Federationwhich presents a threat to the European energy security. Our sample includes panel time series data overthe period from 1997 to 2011 for a 26 EU countries. Based on neoclassical growth model, we create a multivariatemodel including gross fixed capital formation and total labor forces of a country as additional explanatoryvariables. Using panel cointegration tests, we found that there exists a long-run relationship between economicgrowth, natural gas consumption, labor and capital. In the short-run there is bidirectional causality betweennatural gas consumption and economic growth. The causality running from economic growth to natural gasconsumption is positive. On the other hand, the causality, which runs from natural gas consumption to economicgrowth, is negative.