Original scientific paper
The role of energy in economic growth: the case of Croatia
Nela Vlahinić-Dizdarević
orcid.org/0000-0002-2317-0446
; Faculty of Economics, University of Rijeka, Rijeka, Croatia
Saša Žiković
orcid.org/0000-0003-2021-4754
; Faculty of Economics, University of Rijeka, Rijeka, Croatia
Abstract
The purpose of this research is to examine the causal relationship between energy and economic growth in Croatia using data for the period from 1993 to 2006. We use a bivariate model of real GDP and five energy variables: energy consumption in industry and households, oil consumption, primary energy production and net energy imports. Since we found cointegration for all of the tested relationships, we use an Error Correction Model (ECM) which also allows us to distinguish between long and short term relationship among the variables.The empirical results provide clear support of causality that runs from real GDP growth to all energy variables. Our results differ from most of the studies analysing developing countries and are similar to those investigating developed, post-industrial economies with strong tertiary sector. Our research results reflect relatively low energy intensity in Croatia as a consequence of transition depression during the 1990s and the process of deindustrialization.
Keywords
Energy; economic growth; Error Correction Model (ECM); Croatia
Hrčak ID:
54096
URI
Publication date:
20.6.2010.
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