Abstract

Economic growth is one of the most important macroeconomic targets, due to its relatively important effects on the other macroeconomic variables. Among many others, productivity of labor, accumulation of capital, technological improvements, enhancement of human capital, existence of natural resources are considered to be the most important factors affecting economic growth. In this study, the effect of energy usage on industrial production is examined. The contribution  of energy on industrial production is beyond any dispute. The use of energy is impulsive for technological improvement and the most important component of the increase in labor productivity. Machines and capital equipments can not be made use of, unless necessary energy input is obtained. In this paper, the relationship between energy consumption of industry and economic growth for 1970 to 2010 period in Turkey is examined using regression analysis.

Key words: Turkish economy, ındustrial energy consumption, economic growth.

Abbreviation

Jel: E22, E30.