THE RELATIONSHIP BETWEEN ENERGY CONSUMPTION AND GROSS DOMESTIC PRODUCT: POTENTIAL IMPACT OF ENERGY CRISIS ON ECONOMIC GROWTH OF REPUBLIC OF NORTH MACEDONIA
Journal
Economic Development
Date Issued
2022-10
Author(s)
Zafirova, Angela
DOI
10.55302/ed22242019z
Abstract
Energy is a key source of economic growth for any economy
because of the fact that many consumption and production activities involve
energy as a basic input. Energy is one of the most important inputs for econom
ic development. The aim of this paper is to examine the relationship between
gross domestic product and energy consumption on the sample data taken for
the period from 2008 to 2020 for Republic of North Macedonia. Energy con
sumption measured in kilo tons of oil equivalent is taken as an independent
variable, whereas gross domestic product measured in millions of denars is
taken as dependent variable. In the performed statistical tests descriptive sta
tistics, correlation and regression analysis were primarily involved. The con
clusion of this paper is that there is a positive relationship between energy
consumption and gross domestic product in the Republic of North Macedonia.
The existence of a positive relationship between growth level and energy con
sumption in Republic of North Macedonia suggests that any disruption in pro
duction or in consumption of the energy caused by price fluctuations or pos
sible shortages of energy will have a negative impact over the country’s GDP
because of the fact that many consumption and production activities involve
energy as a basic input. Energy is one of the most important inputs for econom
ic development. The aim of this paper is to examine the relationship between
gross domestic product and energy consumption on the sample data taken for
the period from 2008 to 2020 for Republic of North Macedonia. Energy con
sumption measured in kilo tons of oil equivalent is taken as an independent
variable, whereas gross domestic product measured in millions of denars is
taken as dependent variable. In the performed statistical tests descriptive sta
tistics, correlation and regression analysis were primarily involved. The con
clusion of this paper is that there is a positive relationship between energy
consumption and gross domestic product in the Republic of North Macedonia.
The existence of a positive relationship between growth level and energy con
sumption in Republic of North Macedonia suggests that any disruption in pro
duction or in consumption of the energy caused by price fluctuations or pos
sible shortages of energy will have a negative impact over the country’s GDP
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