The Direct and Interactive Effects of Energy Consumption and Human Capital on the Economic Growth of Selected Oildeveloping Countries

Document Type : Research Paper

Authors

1 Ph.D. Student in Economics, Department of Economics, Abhar Branch, Islamic Azad University

2 Professor of Economics, Department of Economics, Economics and Political Science Faculty, Shahid Beheshti University

3 Assistant Professor of Economics, Department of Economics, Abhar Branch, Islamic Azad University

Abstract

Achieving continuous economic growth and identifying its contributing factors is one of
the most important concerns of governments and economists. Access to energy in oil-rich
countries such as Iran can have directly and indirectly affects on growth. Relatively easy
and inexpensive access to energy resources in oil-rich countries such as Iran can not only
directly affect production and economic growth, but also indirectly through strengthening
and synergizing other inputs Plays a role in promoting the economic performance of
countries. This paper, based on theories of economic growth and production, have
estimated long-run coefficients between the variables of physical capital, stock labor input,
human capital, primary energy consumption, the interaction between “primary energy
consumption and human capital” and gross domestic product (GDP) using the most recent
panel methods in oil-developing countries over the period 1973-2014. For this purpose,
unit root tests, panel cointegration tests and Fully Modified Ordinary Least Squares method
(FMOLS) have been used. The results of unit root tests and panel cointegration tests
suggest long-term relationships among the variables. The results of Fully Modified Ordinary Least Squares method (FMOLS) Estimating in countries indicated that human capital had a significant positive effect (0.28) and primary energy consumption had a less positive effect (0.11) on economic growth in the long-run. However, the interaction effect of "primary energy consumption and human capital" was not confirmed.

Keywords

References

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new economy and trad
Volume 15, Issue 1
June 2020
Pages 153-178

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History

  • Receive Date: 19 September 2019
  • Revise Date: 29 November 2019
  • Accept Date: 26 December 2019

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