Energy Use and Growth of Manufacturing Sector: Evidence from Turkey
Energy Use and Growth of Manufacturing Sector: Evidence from Turkey

Summary/Abstract: This study investigates the relationship between Energy use and the growth of the Turkish Manufacturing Sector, using Vector Error Correction and Granger causality, between 1960 and 2015. The research found a long-run association among these variables. However, while the VEC granger causality test result suggests no causality running, either direction, from predetermined Energy Use to Growth in Manufacturing Sector, the Variance decomposition and impulse response tests suggested a positive causality, running from contemporaneous values Energy Use to current and future values of Growth in the Manufacturing Sector of Turkey. It is recommended that more investments be made in the energy sector to help sustain the current performance in the manufacturing sector.

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