Cem IŞIK (isik@atauni.edu.tr)
Atatürk University
Magdalena RĂDULESCU (youmagdar@yahoo.com)
University of Piteşti
Abstract
The objective of the study is to examine the relationship between energy consumption and economic growth by including capital and labor as potential determinants of Cobb–Douglas production function in case of Turkey by using the auto-regressive distributed lag (ARDL) model and rolling window approach (RWA) over the period of 1980-2014. The results from this study confirm a co-integration relationship in the long run. There is a feedback effect between variables and electricity consumption; capital and labor positively impact on the economic growth. This results supports the policy recommendation for a better protection and conservation policy on energy consumption, labor and capital in Turkey in the future in order to achieve better economic growth rates.
Keywords: Cobb–Douglas production function, rolling window approach (RWA), the auto-regressive distributed lag (ARDL), electricity consumption, economic growth, labor and capital.
JEL: C1, N7, O11, O13, O40.
