The causality relationship between natural gas consumption and economic growth in caucasus and central asian economies with natural gas exporters

Abstract

In this study, the causality relationship between natural gas consumption and economic growth in the Caucasus and Central Asian economies (Azerbaijan, Kazakhstan, Uzbekistan, and Turkmenistan) exporting natural gas was investigated using the bootstrap panel Granger causality analysis developed by Kónya for the period 1993-2017. As a result of the analysis, a causality from natural gas consumption to real GDP for Azerbaijan and a causality from real GDP to natural gas consumption in Uzbekistan and Turkmenistan were found. For Kazakhstan, the authors concluded that there was a bi-directional causality between natural gas consumption and real GDP.