Review of energy-growth nexus: A panel analysis for ten Eurasian oil exporting countries

Hasanov, Fakhri; Bulut, Cihan; Suleymanov, Elchin

doi:10.1016/j.rser.2017.01.140

Cited by 74 publications

(42 citation statements)

References 106 publications

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“…There is a vast literature devoted to the (potential) causal relationship between energy consumption and economic growth. Ozturk [13], Smyth and Narayan [14], and Hasanov et al [15] reviewed many of these papers. Unlike the energy consumptioneconomic growth nexus, few papers investigate the relationship between energy consumption and TFP.…”

Section: Literature Reviewmentioning

confidence: 99%

How Total Factor Productivity Drives Long-Run Energy Consumption in Saudi Arabia

Hasanov

Liddle

Mikayilov

et al. 2019

Energy and Environmental Strategies in the Era of Globalization

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In this study, we investigate how total factor productivity (TFP), alongside income, price, and population, shapes energy consumption in the long-run in Saudi Arabia, the world's number one oil exporter. To do so, we first estimate a production function and construct the associated TFP series, and then assess TFP's impact on energy consumption. To take into consideration the stochastic properties of the variables, we employ unit root and cointegration methods. We also correct estimations and test results for potential small sample bias. Our main finding is that TFP has a statistically significant impact on energy consumption in the long-run. The main contribution of our research is that to the best of our knowledge this is the first study that estimates energy consumption effects of TFP for Saudi Arabia. We believe that our research would be useful for Saudi Arabian policymakers in understanding how TFP, a representation of technological progress, institutional development, innovations, openness, and R&D development, influences energy consumption over time. Saudi Vision 2030, the strategic road map of Saudi Arabian development, implies The original version of this chapter was revised: The category of this chapter has been changed to open access. The correction to this chapter is available at https://doi.195 196 F. J. Hasanov et al.rational behavior and lowering the pace of energy consumption in the country. Thus, TFP improvement is a sustainable way to attain these goals.

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Section: Literature Reviewmentioning

confidence: 99%

How Total Factor Productivity Drives Long-Run Energy Consumption in Saudi Arabia

Hasanov

Liddle

Mikayilov

et al. 2019

Energy and Environmental Strategies in the Era of Globalization

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“…In addition, the first study considered only income and the third study considered only urbanization as a regressor, while the second included price and income but no demographic variables in the analyses. Accordingly, one might think that Al-Sahlawi and Liddle and Lund could suffer from the omitted variable bias issue, given that income or urbanization are not the only factors affecting electricity consumption (see theoretical discussions in Lutkepohl [1982] and Triacca [1998]; and empirical discussions in Odhiambo [2009] Hasanov et al [2017). Moreover, neither Al-Sahlawi (1999) nor Eltony and Mohammad (1993) addressed the non-stationary properties of the data used and, thus, the results might be misleading, as Al-Faris (2002) argues, among others.…”

Section: A2 Literature Survey On Saudi Electricity Consumptionmentioning

confidence: 99%

Theoretical Framework for Industrial Electricity Consumption Revisited: Empirical Analysis and Projections for Saudi Arabia

Hasanov¹

2019

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“…Indeed, Figure A1 in the Appendix A shows that the share of oil export revenues (State Oil Fund of the Azerbaijan Republic (SOFAZ) transfers and the tax payments of the State Oil Company of the Azerbaijan Republic (SOCAR)) accounted for an average of slightly higher than 70% of total budget revenues and financed more than half of Azerbaijan's investment during the period 2010-2016. Azerbaijan, with the extraction of less than one million barrels of oil per day, has less flexibility, unlike other oil exporters such as members of the Organization of the Petroleum Exporting Countries (OPEC) and Russia in the world oil market (e.g., see Hasanov et al 2017 for country comparison). In turn, international oil prices determine government budget revenues and thereby expenditures.…”

Section: Introductionmentioning

confidence: 99%

The Effects of Fiscal Policy on Non-Oil Economic Growth

2018

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Abstract:We investigate non-oil sector effects of fiscal policy in Azerbaijan over a long time period in which a recent low oil prices sample is incorporated. To obtain robust empirical findings, we use different test and estimation methods as well as address small-sample bias issues in the extended production function framework. Results show that fiscal policy has a statistically significant positive impact on the non-oil sector both in the long and short run. However, the size of the impact is small compared to the findings of earlier studies due to, we believe, the low oil-price environment and different specifications used. Azerbaijani policymakers should take measures to compensate for the declining share of oil revenues in government revenues. They may consider increasing tax rates, import and export fees, energy and other tariffs as rapid remedies to fill the budget but these measures might hurt economic development. Alternative and less harmful remedies would be optimizing government spending, strongly monitoring ongoing projects, and phasing out social and infrastructure projects, which make lower contributions to growth. Our research opens the way for further investigation of this topic for the oil exporting economies in the future.

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Review of energy-growth nexus: A panel analysis for ten Eurasian oil exporting countries

Cited by 74 publications

References 106 publications

How Total Factor Productivity Drives Long-Run Energy Consumption in Saudi Arabia

How Total Factor Productivity Drives Long-Run Energy Consumption in Saudi Arabia

Theoretical Framework for Industrial Electricity Consumption Revisited: Empirical Analysis and Projections for Saudi Arabia

The Effects of Fiscal Policy on Non-Oil Economic Growth

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