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Abstract
In this study the relation between natural gas consumption and economic growth was analyzed for 20 OECD countries in such a way that covers the years between 1982 and 2012. First of all, cross sectional dependency between the countries was examined. By the findings obtained, as a result of cross sectional dependency unit root test and cointegration tests are required to be second generation tests. Therefore, second generation unit root test (Pesaran CADF (2007)) and cointegration test (Westerlund Durbin-H (2008)) were used. In the results revealed a cointegration relation between natural gas consumption and economic growth was found. And in the last stage of the study the estimation of the long term cointegration coefficients was predicted by the help of Common Correlated Effect (CCE). In the results acquired natural gas consumption affects economic growth positively.
Keywords
Abstract
In this study the relation between natural gas consumption and economic growth was analyzed for 20 OECD countries in such a way that covers the years between 1982 and 2012. First of all, cross sectional dependency between the countries was examined. By the findings obtained, as a result of cross sectional dependency unit root test and cointegration tests are required to be second generation tests. Therefore, second generation unit root test (Pesaran CADF (2007)) and cointegration test (Westerlund Durbin-H (2008)) were used. In the results revealed a cointegration relation between natural gas consumption and economic growth was found. And in the last stage of the study the estimation of the long term cointegration coefficients was predicted by the help of Common Correlated Effect (CCE). In the results acquired natural gas consumption affects economic growth positively.