Study on the Relationship between Energy Consumption, Economic Growth and Export Industry in Iran (Analysis Based on Panel Data)

Due to limitation of energy resources and its importance in the supply chain as the final products for consumers and inputs for manufacturers on the one hand, and On the other hand, due to the large fluctuations in prices and increased greenhouse gas emissions conservation policies and factors affecting supply and demand in recent decades have been considered by the scientific and policy communities.
In this study, the relationship between energy consumption, export and economic growth in the industrial sector of the Iranian economy has been tested.For this purpose, the panel data of energy consumption, export and value added of the industrial sector in the ISIC 2-digit level detail over the years 2002 to 2012 were used.
To study causality and dynamics between variables in the industrial sector the Toda-Yamamoto causality and vector error correction model were used. The results show bidirectional short-run, long-run and strong causality between variables, Except for one case that from exports to energy consumption and economic growth in the short run, there is no causality.