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ID:
115170
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2012.
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| Summary/Abstract |
Following the importance of energy in the agrarian economies, the investigation of the causal relationship between energy consumption in agriculture sector and economic growth has a fundamental role in implementing suitable policies. This paper examines the causal relationship between energy consumption and agricultural value added, controlling for trade openness, in Tunisia from 1980 to 2007. The relationship is investigated at aggregated as well as disaggregated components of energy consumption, including oil and electricity. Using Granger's technique, it is shown that various results are obtained regarding the direction of causality between competing variables. Nevertheless, the most common finding suggest that trade openness and both aggregated and disaggregated energy consumption Granger causes agricultural value added. Therefore, the energy-led growth and trade-led growth hypotheses are supported in the Tunisian agriculture sector. An important policy implication resulting from this study is that energy can be considered as a limiting factor to agriculture value added and, therefore, shocks to energy supply would have a negative impact onto agriculture performance. Furthermore, trade liberalization seems to be a stimulus factor to the Tunisian agriculture development.
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| 2 |
ID:
150753
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| Summary/Abstract |
This study investigates the relationship between agricultural electricity consumption and agricultural output for a panel of 12 regions of Turkey for the period 1995–2013. In order to reveal the possible heterogeneity between regions, empirical analyses are conducted for the whole panel data and two sub-groups within the panel data; namely, coastal regions and non-coastal regions. The results from several panel unit root tests indicate that electricity consumption and output are stationary process at their levels for overall panel and the two specific groups. By using the OLS with regional fixed effects, this study finds that coefficient estimate of electricity consumption on output is statistically significant and positive for overall regions, coastal regions and non-coastal regions. In addition, the results from the Dumitrescu-Hurlin Granger causality test show that there is unidirectional causality running from agricultural output to electricity consumption for non-coastal regions, and there is bidirectional causality between agricultural electricity consumption and output for overall panel and coastal regions. Findings and policy implications are further discussed.
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