In this study, we investigate how total factor productivity (TFP), alongside income, price, and population, shapes energy consumption in the long-run in Saudi Arabia, the world’s number one oil exporter. To do so, we first estimate a production function and construct the associated TFP series, and then assess TFP’s impact on energy consumption. To take into consideration the stochastic properties of the variables, we employ unit root and cointegration methods. We also correct estimations and test results for potential small sample bias. Our main finding is that TFP has a statistically significant impact on energy consumption in the long-run. https://link.springer.com/chapter/10.1007%2F978-3-030-06001-5_821st May 2019
Jeyhun is a research fellow whose primary research interests include but are not limited to applied time series econometrics, the economics of energy and environment, and sustainable development. Previously, he was an associate professor at the Department of Statistics and Econometrics of Azerbaijan State University of Economics (UNEC). Also, at Qafqaz University, Azerbaijan, he served as associate professor in the Department of Economics, as the head of the Center for Socio-Economic Research, and as director of the Institute for Social Sciences and Humanities.
Jeyhun has carried out a post-doctorate study at Indiana University Bloomington, USA. He has also been a visiting researcher at a number of institutions including the Center for Econometric Research, Sungyunkwan University in Seoul, South Korea; Vistula University, Warsaw, Poland; University of North Texas, USA; and University of South Texas, USA.