Paper Title
Energy Consumption And Gdp Energy Consumption And Gdp In Turkey: Cointegration And Causality Analysis

It is done in the current paper that the Johansen cointegration test is applied to analyze the causal relationship between per capita energy consumption (PCEC) and per capita gross domestic product (PCGDP) in Turkey between 1971– 2012. In this study, a vector error correction model (VECM) is applied instead of a vector autoregressive (VAR) model to analyze Granger causality in the presence of cointegration among the variables. The current study’s results investigated that there is a relationship between PCGDP and PCEC for Turkey. It was found by running cointegrating vector and that there is a long term relationship between the energy consumption and GDP. But there is not a short- run relationship between two variables. This study showed that energy have a limited effect for GDP growth for Turkey. These results for Turkey may be similar for other countries which have limited energy resources. Key Words- VECM, Energy Consumption, GDP, Turkey