07 The role of energy in value added of industry sector: A case study of the selected OIC countries

Examining the behavior of energy consumption in various economic sectors is a major step to plan energy consumption management. Industry sector is the most important and influential economic sectors and most economists consider the industry sector as the engine of economic growth.In this paper, the impacts of energy consumption of the industrial sector (in the form of a mix of energy sources from fossil fuels including coal, petroleum products and natural gas) on the value added of industry sector have been studied for selected 8 of OIC countries during the period 1998-2011.To estimate the effects of variables, panel cointegration techniques with the dynamic ordinary least squares (DOLS) approach has been employed.The results suggest that a significant and positive impact of energy consumption on the value added of industrial sector in these countries and plays a determinant role in creating value added in this sector.