The relationship between energy consumption and economic growth: Evidence from Azerbaijan


Mukhtarov S., Mikayilov J. I., İsmayılov V.

International Journal of Energy Economics and Policy, vol.7, no.6, pp.32-38, 2017 (Scopus) identifier

  • Publication Type: Article / Article
  • Volume: 7 Issue: 6
  • Publication Date: 2017
  • Journal Name: International Journal of Energy Economics and Policy
  • Journal Indexes: Scopus
  • Page Numbers: pp.32-38
  • Keywords: Azerbaijan, Economic growth, Energy consumption, Toda-Yamamoto causality test
  • Azerbaijan State University of Economics (UNEC) Affiliated: No

Abstract

The study investigates the causal relationship between energy consumption and economic growth in Azerbaijan using annual data covering the period from 1990 to 2015. We used Toda-Yamamoto causality test framework of vector autoregressive (VAR) model to test causal relationship between the variables. The results of this test show that there is bidirectional causality between energy consumption and economic growth. Findings of the study might be useful tool for the similar economies to give appropriate energy related policy decisions.