Energy consumption and economic growth in Kyrgyz Republic

Abstract

Abstract

Energy consumption and economic growth in Kyrgyz Republic

Ularbek Niiazaliev Technology Management, Economics and Policy Program College of Engineering Seoul National University

Researchers from the different countries have been involved in the study of causality between energy consumption and economic growth, since 1969. Though in case of Kyrgyz Republic, this issue was not plenty researched, main reason is data limitation. This study tries to determine existence or absence of causality between electricity and oil consumption with economic growth in the Kyrgyz Republic. Annual energy consumption data, was used which includes electricity and oil from one side, from another GDP per capita. But because of data limitation, used a data from 1990 (since Kyrgyz Republic become independent state) to 2011. Empirical analyze was used such as the Granger causality test from vector error-correction model, augmented Dickey-Fuller and Phillips-Perron tests, unit root test and cointegration test. The results show existence of unidirectional causality in short and long terms running from the GDP to the oil consumption and bidirectional causality in short and long run between electricity consumption and economic growth in the Kyrgyz Republic. Keywords: Energy use

Economic growth

Cointegration

Vector Error Correction Model, Granger causality.

Student number 2011-22949 Technology Management Economics and Policy Program College of Engineering Seoul National University