The Relationship Between Electricity, Foreign Direct Investment and Economic Growth in Central Asian Countries

Authors : Selçuk KOÇ, Shukhrat SAIDMURODOV

Pages : 321-328

Doi:10.21121/eab.2018237358

View : 96 | Download : 14

Publication Date : 2018-04-01

Article Type : Research Paper

Abstract :The role of the energy sector in the economic growth and development of countries is not questionable. Thus, this sector process and structure are very important. The renewable energy resources are energies obtained from the continuous energies occurring naturally. In the Central Asian countries, the hydro electrical energy is one of the renewable energy resources, and it should be utilized by these countries to improve this sector. Energy consumption is one of socialeconomic development indicators. There are so many literatures about the relationship between energy consumption and economic growth. Unlike previous literatures, in this study FDI has been added as a third variable. In this study, whether or not FDI increases the economic growth and then economic growth increases energy consumption, will be analyzed by using time series methods analysis. Moreover, these relationships will be analyzed in five Central Asian (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan) countries during period 1991 to 2014. In this study, stationarity of series is formed and Johansen Cointegration test is utilized to see whether or not series are moving together in the long term.
Keywords : Energy Consumption, Growth, FDI, Central Asia, Panel Causality

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