The Relationship Between Coal Consumption and Economic Growth in Turkey: Recursive Evolving Window Causality Approach Cover Image

Türkiye’de Kömür Tüketimi ve Ekonomik Büyüme İlişkisi: Tekrarlamalı Gelişen Pencereli Nedensellik Yaklaşımı
The Relationship Between Coal Consumption and Economic Growth in Turkey: Recursive Evolving Window Causality Approach

Author(s): Abdullah Emre Çağlar
Subject(s): National Economy, Energy and Environmental Studies, Environmental and Energy policy, Economic development
Published by: Haci Mustafa Paksoy
Keywords: Time varying causality; unit root; Fourier causality; growth hypothesis;

Summary/Abstract: This study aims to investigate the causal relationship between coal consumption and economic growth in Turkey, one of the intense coal-consuming countries. To achieve this aim, the Recursive Evolving Window causality approach, which was newly introduced to the literature by Shi et al. (2018) and Shi et al. (2020), is used. To contribute methodologically, this study compares the results of Granger (1969), Toda-Yamamoto (1995), the Fourier causality approach developed by Nazlioglu et al. (2016), which are widely used in the literature, and the time-varying causality results. Approaches that do not consider the change over time have not found a causal relationship between economic growth and coal consumption. On the other hand, the time-varying causality approach caught a causal relationship from coal consumption to economic growth at some point in time. These results show that the growth hypothesis is valid for coal consumption and economic growth in Turkey. However, the causality relationship between the variables covers a short period, and the causal relationship ends after 1982. Thus, the differences between ordinary and Recursive Evolving Window causality results are shown.

  • Issue Year: 7/2022
  • Issue No: 17
  • Page Range: 351-365
  • Page Count: 15
  • Language: Turkish