The Relationship Between Export Diversification and Energy Demand: An Emprical Analysis Of BRICS-T Countries
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https://doi.org/10.5281/zenodo.7375803Keywords:
Export Diversification, Energy Demand, BRICS-T Countries, Panel Co-integration TestAbstract
Increasing international trade activities with globalization lead to product diversification in exports. Export diversification can generate economic gains through two different channels: diversification in export products or industries and diversification in export partners or markets. Countries that tend to diversify in exports are trading with more countries and exporting a wide range of products. Export diversification may have effects on factors such as economic growth, investment, terms of trade, exchange rate, employment. In addition to these, changes in the consumption or demand of energy, which is accepted as an important input in production because it plays an important role in achieving sustainable economic growth, can also be affected by export diversification. In addition, thanks to export diversification, energy density can be controlled and efficient energy use can be achieved. The export diversification process ensures that regulations are made to produce energy efficient products. This study explores how export diversification contributed to energy demand for BRICS-T countries in the period 1995-2014. In this context, panel cointegration tests, panel FMOLS and panel DOLS tests were applied in the study. As a result of the study, it was found that there is a negative relationship between energy demand and export diversification in the long run.
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