Vol. 10 No. 3 (2022): Business & Management Studies: An International Journal
Articles

The effects of globalization on energy consumption: Evidence from EAGLEs

Vildan YAVUZ
Assist. Prof. Dr., Recep Tayyip Erdogan University, Rize, Turkey
Ali ALTINER
Assoc. Prof. Dr., Recep Tayyip Erdogan University, Rize, Turkey
Eda BOZKURT
Assoc. Prof. Dr., Ataturk University, Erzurum, Turkey

Published 2022-09-25

Keywords

  • Ekonomik Büyüme, Enerji Tüketimi, Küreselleşme, Panel Veri Analizi
  • Economic Growth, Energy Consumption, Globalization, Panel Data Analysis

How to Cite

YAVUZ, V., ALTINER, A., & BOZKURT, E. (2022). The effects of globalization on energy consumption: Evidence from EAGLEs. Business &Amp; Management Studies: An International Journal, 10(3), 885–894. https://doi.org/10.15295/bmij.v10i3.2081

Abstract

Energy is seen as one of the critical inputs of the production process to ensure countries' economic and social development. Due to the increasing economic integration between countries in recent years, the relationship between globalization and energy consumption is frequently discussed. To contribute to the discussions on this subject, the effect of the globalization process on energy consumption was investigated in this study. In addition to globalization, economic growth, urbanization, and changes in public expenditures on energy consumption are also examined. In this context, panel data analysis was made for the period 1990-2019 by using annual data of 9 countries called EAGLEs (Emerging and Growth-leading Economies). The analysis framework applied cross-section dependency and Pesaran's (2007) CADF (Cross Sectional Dickey-Fuller) unit root tests. Then, coefficient estimates were made with the random-effects model. The findings show that the increase in globalization increases energy consumption. In addition, it has been determined that economic growth, included in the model as a control variable, has an increasing effect on energy consumption. In addition, it has been observed that the increase in urbanization has reduced effects on energy consumption, but the change in public expenditures has no effect.

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