• ISSN: 2010-023X
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing: Engineering & Technology Digital Library, ProQuest, Crossref, Electronic Journals Library, DOAJ , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2014 Vol.5(6): 482-489 ISSN: 2010-023X
DOI: 10.7763/IJTEF.2014.V5.420

The Relation between the Budget Deficit and Energy Demand in the Selected European Countries and Turkey: Panel Cointegration Analysis

Zerife Yildirim and Ayşe Atilgan Yaşa
Abstract—Within a country in the current globalized world, there is being an immense increase in energy demand due to a rapidly growing economy, changing living standards, population growth and rapid urbanization. Although the subject of some noteworthy studies has been on the energy policies, there are not so many of them focused on the correlation between energy demand and the budget deficit. Considering the researches ever made, mostly for developing countries, it is derived that the level of energy demand exceeds the level of energy supply.
In the countries where there exists limited energy production capacity as well as, adversely, a huge growth of energy demand, that has resulted in dependency on high-cost energy resources or energy imports. However, these countries are diversified from each other with varying degrees of budget balances, supply-demand relations, or underground energy base. In this study, we aim to focus on the relationship between budget deficit and energy demand in some European countries and Turkey within the years of 1960-2013. In order to determine that relationship, panel causality test, panel unit root tests, and panel cointegration analysis are used in terms of methodological framework.

Index Terms—Budget deficit, energy demand, European countries, panel unit root test, panel ARDL cointegration, panel causality.

Zerife Yildirim and Ayşe Atilgan Yaşa are with the Dokuz Eylül University, Turkey (e-mail: {zerifeyildirim, a_atilgan45}@hotmail.com).

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Cite: Zerife Yildirim and Ayşe Atilgan Yaşa, "The Relation between the Budget Deficit and Energy Demand in the Selected European Countries and Turkey: Panel Cointegration Analysis," International Journal of Trade, Economics and Finance vol.5, no.6, pp. 482-489, 2014.

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