THE RELATIONSHIP BETWEEN RENEWABLE ENERGY CONSUMPTION, TRADE OPENNESS AND ECONOMIC GROWTH: THE CASE OF BOSNIA AND HERZEGOVINA
The paper examines the renewable energy con-sumption-trade openness-economic growth ne-xus for Bosnia and Herzegovina using annual time series data covering the period of 1994-2015. The variables in the analysis were checked using Augmented Dickey Fuller test statistics. The results obtained indica...
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Faculty of Economics, University of Tuzla
2020-05-01
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| Series: | Economic Review |
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| Online Access: | https://www.er.ef.untz.ba/index.php/er/article/view/60 |
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| author | Yilmaz Onur Ari |
| author_facet | Yilmaz Onur Ari |
| author_sort | Yilmaz Onur Ari |
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The paper examines the renewable energy con-sumption-trade openness-economic growth ne-xus for Bosnia and Herzegovina using annual time series data covering the period of 1994-2015. The variables in the analysis were checked using Augmented Dickey Fuller test statistics. The results obtained indicated that economic growth became stationary at level while rene-wable energy consumption and trade openness variables became stationary at first difference. According to Todo-Yamamoto Causality Test results, there is a unidirectional causality from renewable energy consumption to economic growth at 5 % in the long run. This finding is in line with the growth theory which remarks unidirectional/one-way causality from renewa-ble energy consumption to economic growth. In this case, renewable energy dependent conser-vation policy may have prohibitive effect on economic growth. The study also concluded that there is no association between trade openness and economic growth. Thus, the finding su-pports the neo-classical growth theory. Besides, there is a causality from renewable energy co-nsumption to trade openness, so the conser-vation policies will affect the trade and trade liberalization policies designed to promote eco-nomic growth.
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| format | Article |
| id | doaj-art-22dcf81211d342ceac8b2151eb91bb2c |
| institution | Kabale University |
| issn | 1512-8962 2303-680X |
| language | English |
| publishDate | 2020-05-01 |
| publisher | Faculty of Economics, University of Tuzla |
| record_format | Article |
| series | Economic Review |
| spelling | doaj-art-22dcf81211d342ceac8b2151eb91bb2c2025-02-11T00:32:58ZengFaculty of Economics, University of TuzlaEconomic Review1512-89622303-680X2020-05-01181THE RELATIONSHIP BETWEEN RENEWABLE ENERGY CONSUMPTION, TRADE OPENNESS AND ECONOMIC GROWTH: THE CASE OF BOSNIA AND HERZEGOVINA Yilmaz Onur Ari0Bayburt University, Turkey The paper examines the renewable energy con-sumption-trade openness-economic growth ne-xus for Bosnia and Herzegovina using annual time series data covering the period of 1994-2015. The variables in the analysis were checked using Augmented Dickey Fuller test statistics. The results obtained indicated that economic growth became stationary at level while rene-wable energy consumption and trade openness variables became stationary at first difference. According to Todo-Yamamoto Causality Test results, there is a unidirectional causality from renewable energy consumption to economic growth at 5 % in the long run. This finding is in line with the growth theory which remarks unidirectional/one-way causality from renewa-ble energy consumption to economic growth. In this case, renewable energy dependent conser-vation policy may have prohibitive effect on economic growth. The study also concluded that there is no association between trade openness and economic growth. Thus, the finding su-pports the neo-classical growth theory. Besides, there is a causality from renewable energy co-nsumption to trade openness, so the conser-vation policies will affect the trade and trade liberalization policies designed to promote eco-nomic growth. https://www.er.ef.untz.ba/index.php/er/article/view/60renewable energy consumptiontrade opennesseconomic growthtime series analysisBosnian economy |
| spellingShingle | Yilmaz Onur Ari THE RELATIONSHIP BETWEEN RENEWABLE ENERGY CONSUMPTION, TRADE OPENNESS AND ECONOMIC GROWTH: THE CASE OF BOSNIA AND HERZEGOVINA Economic Review renewable energy consumption trade openness economic growth time series analysis Bosnian economy |
| title | THE RELATIONSHIP BETWEEN RENEWABLE ENERGY CONSUMPTION, TRADE OPENNESS AND ECONOMIC GROWTH: THE CASE OF BOSNIA AND HERZEGOVINA |
| title_full | THE RELATIONSHIP BETWEEN RENEWABLE ENERGY CONSUMPTION, TRADE OPENNESS AND ECONOMIC GROWTH: THE CASE OF BOSNIA AND HERZEGOVINA |
| title_fullStr | THE RELATIONSHIP BETWEEN RENEWABLE ENERGY CONSUMPTION, TRADE OPENNESS AND ECONOMIC GROWTH: THE CASE OF BOSNIA AND HERZEGOVINA |
| title_full_unstemmed | THE RELATIONSHIP BETWEEN RENEWABLE ENERGY CONSUMPTION, TRADE OPENNESS AND ECONOMIC GROWTH: THE CASE OF BOSNIA AND HERZEGOVINA |
| title_short | THE RELATIONSHIP BETWEEN RENEWABLE ENERGY CONSUMPTION, TRADE OPENNESS AND ECONOMIC GROWTH: THE CASE OF BOSNIA AND HERZEGOVINA |
| title_sort | relationship between renewable energy consumption trade openness and economic growth the case of bosnia and herzegovina |
| topic | renewable energy consumption trade openness economic growth time series analysis Bosnian economy |
| url | https://www.er.ef.untz.ba/index.php/er/article/view/60 |
| work_keys_str_mv | AT yilmazonurari therelationshipbetweenrenewableenergyconsumptiontradeopennessandeconomicgrowththecaseofbosniaandherzegovina AT yilmazonurari relationshipbetweenrenewableenergyconsumptiontradeopennessandeconomicgrowththecaseofbosniaandherzegovina |