Journal of Economic Research (Tahghighat- E- Eghtesadi)

Journal of Economic Research (Tahghighat- E- Eghtesadi)

Long-Term Analysis of the Nonlinear Effect of Export Diversification on Energy Demand in OPEC Member Countries

Document Type : Research Paper

Authors
Parastoo Raeisi 1
Ali Asghar Salem 2
javad taherpoor 1
1 Department of Economics, Faculty of Economics, Allameh Tabataba'i University, Tehran, Iran
2 Department of Economics, Faculty of Economics, Allameh Tabataba'i University, Tehran, Iran
10.22059/jte.2023.344973.1008675
Abstract
In recent years, a group of researchers have shown that not only the quantitative growth of exports, but also its diversity can affect energy demand. On the one hand, export diversification can replace energy-efficient products and services with energy-intensive products, and on the other hand, it can lead to an increase in industrial production; Therefore, in the present study, the non-linear effect of export diversity on the energy demand of OPEC member countries was investigated using fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) long-term regression models, during the period of 2004-2019. The results of the study show that increasing export diversity increases energy demand. In addition, the non-linear U-shaped relationship between export diversity and energy demand was confirmed in this study, and also, the coefficients obtained for oil prices are negative and significant and for real GDP, natural resource rent, urbanization and population are positive and significant.
JEL Classification:
 F1, F12, Q56, C32
Keywords
Energy Demand
Export Diversification
Herfindahl-Hirschman Concentration Index
Fully Modified Ordinary Least Squares Model
Dynamic Ordinary Least Squares Model
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https://doi.org/10.1016/j.renene.2021.06.125

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  • Receive Date 25 June 2022
  • Revise Date 24 January 2023
  • Accept Date 16 February 2023