The Impact of Natural Gas Consumption on Industry Value Added in the Mediterranean Region

Harkat, Tahar (2019): The Impact of Natural Gas Consumption on Industry Value Added in the Mediterranean Region.

Abstract

The current paper assesses the link between natural gas consumption (NGC) and macroeconomic variables for the period between 1980 and 2018 in the Mediterranean region. Analyses accounts for assessing the significance of the natural gas consumption on the industry value added (IVA) using fixed-effects panel data regression. In addition to that, this contribution evaluates the causal link between the variables cited above. Empirical findings indicate that there is a significant relationship between IVA and NGC. Furthermore, these two latter variables showcase a mutual causality in a sense that an increase in each of these variables will lead to the increase of the other one. Results also indicate that GDP causes the increase in natural gas consumption

• Item Type: MPRA Paper
• Language: English
• Keywords: Mediterranean Region, Causality, Panel Data, Fixed-Effect, Granger Causality, Industry Value Added, GDP, Natural Gas Consumption
• Subjects: L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L10 - General; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O29 - Other; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q30 - General; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q38 - Government Policy; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy

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