Open AccessThe Relationship Between Energy Consumption, Economic Growth, Inflation and Trade Openness: An Analysis for Fragile Five Countries
Author(s) -
Asuman Koç Yurtkur,
Bersu Bahtiyar
Publication year - 2017
Publication title -
international journal of research in business and social science
Language(s) - English
Resource type - Journals
ISSN - 2147-4478
DOI - 10.20525/ijrbs.v6i6.785
Subject(s) - openness to experience , economics , energy consumption , consumption (sociology) , inflation (cosmology) , developing country , international economics , macroeconomics , economic growth , psychology , social psychology , social science , ecology , physics , sociology , theoretical physics , biology
Energy is one of the most important dynamics of economic growth all over the world. Specially developing countries are in need of much more enery to provide economic growth. In this study, the relationship between energy consumption, economic growth, inflation and trade openness is exaimined by using structural VAR model for fragile five countries which have similar characteristics in terms of macroeconomic indicators. The analysis carried out with annual data that contains 1971-2013 period for fragile countries which contains of Turkey, South Africa, India, Indonesia and Brazil. According to the empirical results of the study, shocks that emerged in economic growth affect energy consumption positively but decreasingly in all countries. A substantial part of changes in energy consumption are explaned with economic growth in Turkey, India and Brazil. More than 80 percent of changes in energy consumption arise from energy consumption in South Africa and Indonesia.