The Role of Energy Consumption and Economic Growth on Human Development in Emerging (E-7) Countries: Fresh Evidence from Second-Generation Panel Data Analyses

Oktay Kizilkaya


Malatya Turgut Özal University (Turkey)
https://orcid.org/0000-0002-3412-5616

Oktay Kizilkaya

okizilkaya@ahievran.edu.tr
Kırşehir Ahi Evran University (Turkey)
https://orcid.org/0000-0002-7165-6088

Gökhan Akar


Karamanoglu Mehmetbey University (Turkey)
https://orcid.org/0000-0001-8401-4052

Faruk Mike


Osmaniye Korkut Ata University (Turkey)
https://orcid.org/0000-0002-9194-1679

Abstract

This study aims to examine the impacts of energy consumption and economic growth on the human development index of seven emerging countries (E-7) with high economic performance for yearly observations from 1992 to 2021. The analyses were carried out with second-generation panel data analyses: (i) Panel cointegration test with structural breaks proposed by Westerlund (2006), (ii) augmented mean group estimator recommended by Eberhardt and Bond (2009), and (iii) Dumitrescu and Hurlin (2012) panel causality test. The empirical model also included trade openness and urbanization parameters as control variables. The panel cointegration test outcomes reveal the presence of a long-run relation among the human development index and energy consumption, economic growth, urbanization, and trade openness for all countries. Augmented mean group test outcomes signify that energy consumption, economic growth, and trade openness have positive and statistically significant impacts on the human development index, whereas urbanization does not have any statistically significant impact in the long-run. Finally, panel causality test results signify that there is a bidirectional relation between the human development index and energy consumption, economic growth, and trade openness and also a unidirectional relation from urbanization to the human development index in E-7 countries. All these findings indicate that the main macroeconomic indicators have an important role on the human development index in E-7 countries. In this context, these countries should implement a more effective and innovative economic policy for Sustainable development goals.


Keywords:

Human development index, economic growth, energy consumption, E-7 countries, panel data estimations

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2024-07-01

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Kizilkaya, O., Kizilkaya, O., Akar, G., & Mike, F. (2024). The Role of Energy Consumption and Economic Growth on Human Development in Emerging (E-7) Countries: Fresh Evidence from Second-Generation Panel Data Analyses . Problemy Ekorozwoju, 19(2), 186–202. https://doi.org/10.35784/preko.5798

Authors

Oktay Kizilkaya 

Malatya Turgut Özal University Turkey
https://orcid.org/0000-0002-3412-5616

Authors

Oktay Kizilkaya 
okizilkaya@ahievran.edu.tr
Kırşehir Ahi Evran University Turkey
https://orcid.org/0000-0002-7165-6088

Authors

Gökhan Akar 

Karamanoglu Mehmetbey University Turkey
https://orcid.org/0000-0001-8401-4052

Authors

Faruk Mike 

Osmaniye Korkut Ata University Turkey
https://orcid.org/0000-0002-9194-1679

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