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DOI :10.26650/ekoist.2023.38.1090992   IUP :10.26650/ekoist.2023.38.1090992    Tam Metin (PDF)

Testing Linear and Nonlinear Relationships Between Foreign Direct Investment and Fossil Energy Consumption in Fragile Five Countries

Ali Çelik

The global warming and climate change problem is causing severe threats for the present and the future. The excessive utilization of fossil energy resources, especially on the production side, has contributed greatly to global warming by producing the greenhouse effect. In this respect, it is essential to assess the impact of foreign direct investment (FDI), which is expected to increase the production and employment of countries, on the utilization of fossil fuels. In this study, we investigate the relationship between FDI and fossil energy consumption (EC) utilizing such tests as: Johansen linear cointegration, Kapetanios, Shin, and Snell (2006) nonlinear cointegration, the linear Error Correction Model (ECM), Exponential Smooth Autoregressive (ESTAR) ECM, Granger (1969) linear causality, and Diks and Panchenko (2006) nonlinear causality. In this context, annual data covering the period between 1980 and 2020 are employed for the “Fragile Five” countries, which are: Brazil, Indonesia, India, Turkey, and South Africa. By applying the Augmented DickeyFuller (ADF) linear unit root test, we found that the series became stationary after taking the first difference. Following the unit root test results, Johansen's (1988) linear cointegration test results indicated that there existed a cointegration relationship from FDI to EC for Turkey and South Africa, while Kapetanios, Shin, and Snell's (2006) nonlinear cointegration test results revealed that there existed a cointegration relationship from FDI to EC in South Africa. In addition, the linear error correction model was proven to be valid for Turkey and South Africa, while the ESTAR nonlinear error correction model is valid only for Turkey. Finally, Granger's (1969) causality test results proved that there was a causal relationship from FDI to EC in Turkey. Dicks and Panchenko (2006) stated that there was no causal relationship between the variables.


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APA

Çelik, A. (2023). Testing Linear and Nonlinear Relationships Between Foreign Direct Investment and Fossil Energy Consumption in Fragile Five Countries. EKOIST Journal of Econometrics and Statistics, 0(38), 1-17. https://doi.org/10.26650/ekoist.2023.38.1090992


AMA

Çelik A. Testing Linear and Nonlinear Relationships Between Foreign Direct Investment and Fossil Energy Consumption in Fragile Five Countries. EKOIST Journal of Econometrics and Statistics. 2023;0(38):1-17. https://doi.org/10.26650/ekoist.2023.38.1090992


ABNT

Çelik, A. Testing Linear and Nonlinear Relationships Between Foreign Direct Investment and Fossil Energy Consumption in Fragile Five Countries. EKOIST Journal of Econometrics and Statistics, [Publisher Location], v. 0, n. 38, p. 1-17, 2023.


Chicago: Author-Date Style

Çelik, Ali,. 2023. “Testing Linear and Nonlinear Relationships Between Foreign Direct Investment and Fossil Energy Consumption in Fragile Five Countries.” EKOIST Journal of Econometrics and Statistics 0, no. 38: 1-17. https://doi.org/10.26650/ekoist.2023.38.1090992


Chicago: Humanities Style

Çelik, Ali,. Testing Linear and Nonlinear Relationships Between Foreign Direct Investment and Fossil Energy Consumption in Fragile Five Countries.” EKOIST Journal of Econometrics and Statistics 0, no. 38 (Jul. 2024): 1-17. https://doi.org/10.26650/ekoist.2023.38.1090992


Harvard: Australian Style

Çelik, A 2023, 'Testing Linear and Nonlinear Relationships Between Foreign Direct Investment and Fossil Energy Consumption in Fragile Five Countries', EKOIST Journal of Econometrics and Statistics, vol. 0, no. 38, pp. 1-17, viewed 25 Jul. 2024, https://doi.org/10.26650/ekoist.2023.38.1090992


Harvard: Author-Date Style

Çelik, A. (2023) ‘Testing Linear and Nonlinear Relationships Between Foreign Direct Investment and Fossil Energy Consumption in Fragile Five Countries’, EKOIST Journal of Econometrics and Statistics, 0(38), pp. 1-17. https://doi.org/10.26650/ekoist.2023.38.1090992 (25 Jul. 2024).


MLA

Çelik, Ali,. Testing Linear and Nonlinear Relationships Between Foreign Direct Investment and Fossil Energy Consumption in Fragile Five Countries.” EKOIST Journal of Econometrics and Statistics, vol. 0, no. 38, 2023, pp. 1-17. [Database Container], https://doi.org/10.26650/ekoist.2023.38.1090992


Vancouver

Çelik A. Testing Linear and Nonlinear Relationships Between Foreign Direct Investment and Fossil Energy Consumption in Fragile Five Countries. EKOIST Journal of Econometrics and Statistics [Internet]. 25 Jul. 2024 [cited 25 Jul. 2024];0(38):1-17. Available from: https://doi.org/10.26650/ekoist.2023.38.1090992 doi: 10.26650/ekoist.2023.38.1090992


ISNAD

Çelik, Ali. Testing Linear and Nonlinear Relationships Between Foreign Direct Investment and Fossil Energy Consumption in Fragile Five Countries”. EKOIST Journal of Econometrics and Statistics 0/38 (Jul. 2024): 1-17. https://doi.org/10.26650/ekoist.2023.38.1090992



ZAMAN ÇİZELGESİ


Gönderim21.04.2022
Kabul19.12.2022
Çevrimiçi Yayınlanma02.02.2023

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