THE ANALYSIS OF THE RELATIONSHIP BETWEEN ENERGY CONSUMPTION AND ECONOMIC GROWTH IN SELECTED OECD COUNTRIES: EVIDENCES FROM COINTEGRATION TECHNIQUE WITH STRUCTURAL BREAK

The main purpose of the study is to examine the direction and the long run relationship between energy consumption and economic growth in selected OECD countries. In this study, Gregory Hansen cointegration method with structural break is used to estimate the long run relationship and to determine the direction of this relationship. The study also uses Error Correction Model (ECM) and VAR-Granger causality tests. Our findings provide some evidences related to the growth hypothesis, energy conservation hypothesis, feedback hypothesis and neutrality hypothesis, which are developed to explain energy consumption-economic growth nexus in the literature