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Do Renewable Energy and Foreign Direct Investment Promote Economic Growth in Turkey? An Evidence Through a Nonlinear and Asymmetric Analysis Approach

Year 2022, Volume: 17 Issue: 66, 415 - 436, 30.04.2022
https://doi.org/10.19168/jyasar.1013423

Abstract

 We aim at examining the asymmetric relationship between foreign direct investment (FDI) and economic growth by adding renewable and non-renewable energy consumption, labor, and capital for Turkey in 1987-2015 period. For this purpose, non-linear ARDL test is employed for the first time to analyze the link amongst the variables in the context of Turkey. Our results confirm that all variables included into model have positive effects on economic growth. For example, while 1 % increase of positive shock in FDI increases economic growth by 0.053 %, 1 % increase in negative shock decreases economic growth around 0.057 % in Turkey in the long-run. Furthermore, since non-renewable energy contributes to economic growth nearly two times higher than renewable energy, Turkish economy is dependent on imported fossil fuels rather than renewable energy sources. Our study highlights the importance of energy efficiency and productivity issues in Turkey. Policy implications of obtained results are presented at the end of the study. 

References

  • Acaravci, A, Erdogan, S. and Akalin, G. 2015. “The Electricity Consumption, Real Income, Trade Openness and Foreign Direct Investment: The Empirical Evidence from Turkey”. International Journal of Energy Economics and Policy, 5(4), 1050-1057.
  • Acaravci, A. 2010. “Structural breaks, electricity consumption and economic growth: Evidence from Turkey”. Journal for Economic Forecasting, 2, 140-154.
  • Akinlo, A.E. 2008. “Energy consumption and economic growth: Evidence from 11 Sub-Sahara African countries”. Energy Economics, 30(5), 2391-2400.
  • Aktas, C., and Yilmaz V. 2008. “Causal relationship between electricity consumption and economic growth in Turkey”. (In Turkish) Zonguldak Karaelmas Üniversitesi Sosyal Bilimler Dergisi, 4(8), 45-54.
  • Alam, A. 2013. “Electric power consumption, foreign direct investment and economic growth: A comparative study of India and Pakistan”. World Journal of Science, Technology and Sustainable Development, 10(1), 55-65.
  • Alfaro, L., Chanda, A., Kalemli-Ozcan, S., and Sayek S. 2004. “FDI and economic growth: The role of local financial markets”. Journal of International Economics, 64, 89–112.

Yenilenebilir Enerji ve Doğrudan Yabancı Yatırımlar Türkiye'de Ekonomik Büyümeyi Destekliyor Mu? Doğrusal Olmayan ve Asimetrik Bir Analiz Yaklaşımı Aracılığıyla Bir Kanıt

Year 2022, Volume: 17 Issue: 66, 415 - 436, 30.04.2022
https://doi.org/10.19168/jyasar.1013423

Abstract

Bu çalışmada 1987-2015 döneminde Türkiye için yenilenebilir ve yenilenemez enerji tüketimi, işgücü ve sermayeyi ekleyerek doğrudan yabancı yatırım (DYY) ile ekonomik büyüme arasındaki asimetrik ilişkiyi incelemeyi amaçlıyoruz. Bu amaçla, Türkiye bağlamında değişkenler arasındaki bağlantıyı analiz etmek için ilk kez doğrusal olmayan ARDL testi kullanılmıştır. Sonuçlarımız, modele dahil edilen tüm değişkenlerin ekonomik büyüme ve üzerinde olumlu etkileri olduğunu doğrulamaktadır. Örneğin Türkiye’de uzun dönemde DYY’daki pozitif şokun %1’lik artışı ekonomik büyümeyi %0.053 artırırken,, negatif şoktaki %1’lik artış ekonomiyi %0,057 azaltmaktadır. Ayrıca, yenilenemeyen enerji (fosil yakıtlar), ekonomik büyümeye yenilenebilir enerjiden yaklaşık iki kat daha fazla katkıda bulunduğundan, Türkiye ekonomisi yenilenebilir enerji kaynaklarından ziyade ithal fosil yakıtlara bağımlıdır. Çalışmamız, Türkiye'de enerji verimliliği ve verimlilik konularının önemini vurgulamaktadır. Elde edilen sonuçların politika çıkarımları çalışmanın sonunda sunulmuştur. 

References

  • Acaravci, A, Erdogan, S. and Akalin, G. 2015. “The Electricity Consumption, Real Income, Trade Openness and Foreign Direct Investment: The Empirical Evidence from Turkey”. International Journal of Energy Economics and Policy, 5(4), 1050-1057.
  • Acaravci, A. 2010. “Structural breaks, electricity consumption and economic growth: Evidence from Turkey”. Journal for Economic Forecasting, 2, 140-154.
  • Akinlo, A.E. 2008. “Energy consumption and economic growth: Evidence from 11 Sub-Sahara African countries”. Energy Economics, 30(5), 2391-2400.
  • Aktas, C., and Yilmaz V. 2008. “Causal relationship between electricity consumption and economic growth in Turkey”. (In Turkish) Zonguldak Karaelmas Üniversitesi Sosyal Bilimler Dergisi, 4(8), 45-54.
  • Alam, A. 2013. “Electric power consumption, foreign direct investment and economic growth: A comparative study of India and Pakistan”. World Journal of Science, Technology and Sustainable Development, 10(1), 55-65.
  • Alfaro, L., Chanda, A., Kalemli-Ozcan, S., and Sayek S. 2004. “FDI and economic growth: The role of local financial markets”. Journal of International Economics, 64, 89–112.
There are 6 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Gülden Bölük 0000-0001-8901-8503

Abdullah Emre Çağlar 0000-0003-4723-4499

Mehmet Mert 0000-0003-1406-4075

Publication Date April 30, 2022
Published in Issue Year 2022 Volume: 17 Issue: 66

Cite

APA Bölük, G., Çağlar, A. E., & Mert, M. (2022). Do Renewable Energy and Foreign Direct Investment Promote Economic Growth in Turkey? An Evidence Through a Nonlinear and Asymmetric Analysis Approach. Yaşar Üniversitesi E-Dergisi, 17(66), 415-436. https://doi.org/10.19168/jyasar.1013423
AMA Bölük G, Çağlar AE, Mert M. Do Renewable Energy and Foreign Direct Investment Promote Economic Growth in Turkey? An Evidence Through a Nonlinear and Asymmetric Analysis Approach. Yaşar Üniversitesi E-Dergisi. April 2022;17(66):415-436. doi:10.19168/jyasar.1013423
Chicago Bölük, Gülden, Abdullah Emre Çağlar, and Mehmet Mert. “Do Renewable Energy and Foreign Direct Investment Promote Economic Growth in Turkey? An Evidence Through a Nonlinear and Asymmetric Analysis Approach”. Yaşar Üniversitesi E-Dergisi 17, no. 66 (April 2022): 415-36. https://doi.org/10.19168/jyasar.1013423.
EndNote Bölük G, Çağlar AE, Mert M (April 1, 2022) Do Renewable Energy and Foreign Direct Investment Promote Economic Growth in Turkey? An Evidence Through a Nonlinear and Asymmetric Analysis Approach. Yaşar Üniversitesi E-Dergisi 17 66 415–436.
IEEE G. Bölük, A. E. Çağlar, and M. Mert, “Do Renewable Energy and Foreign Direct Investment Promote Economic Growth in Turkey? An Evidence Through a Nonlinear and Asymmetric Analysis Approach”, Yaşar Üniversitesi E-Dergisi, vol. 17, no. 66, pp. 415–436, 2022, doi: 10.19168/jyasar.1013423.
ISNAD Bölük, Gülden et al. “Do Renewable Energy and Foreign Direct Investment Promote Economic Growth in Turkey? An Evidence Through a Nonlinear and Asymmetric Analysis Approach”. Yaşar Üniversitesi E-Dergisi 17/66 (April 2022), 415-436. https://doi.org/10.19168/jyasar.1013423.
JAMA Bölük G, Çağlar AE, Mert M. Do Renewable Energy and Foreign Direct Investment Promote Economic Growth in Turkey? An Evidence Through a Nonlinear and Asymmetric Analysis Approach. Yaşar Üniversitesi E-Dergisi. 2022;17:415–436.
MLA Bölük, Gülden et al. “Do Renewable Energy and Foreign Direct Investment Promote Economic Growth in Turkey? An Evidence Through a Nonlinear and Asymmetric Analysis Approach”. Yaşar Üniversitesi E-Dergisi, vol. 17, no. 66, 2022, pp. 415-36, doi:10.19168/jyasar.1013423.
Vancouver Bölük G, Çağlar AE, Mert M. Do Renewable Energy and Foreign Direct Investment Promote Economic Growth in Turkey? An Evidence Through a Nonlinear and Asymmetric Analysis Approach. Yaşar Üniversitesi E-Dergisi. 2022;17(66):415-36.