Relationships between Energy Consumption and Economic Growth: Panel Data Analysis on Provinces in Turkey (2004-2014)

The aim of this study is to investigate the relationship between Turkey's economic growth and energy consumption in the province. The Westerlund panel cointegration test and the Granger panel causality test were used to analyse long and short-term relationships between variables in the study. According to results the study, there is a strong cointegration relationship between energy consumption and economic growth at the county level in Turkey. There is also a bi-directional and regenerative relationship between energy consumption and economic growth, according to Granger panel causality results. Therefore, these findings obtained from the study reveals the importance of electricity consumption in the solution of regional growth and development issues in Turkey.