The Impact of Energy Security on the Economic Growth

Abstract

This study examines the impact of energy security on the economic growth of the 10 selected energy exporting countries in the Middle East. The Benchmark model is based on a generalized version of Cobb Douglass’s production function. Ten measures of energy security have been used for the whole set of panels, using five concepts of energy security including, availability, accessibility, acceptability, cost- effectiveness and development capability. The paper uses estimated generalized least squares (EGLS), and panel– corrected standard error (PCSE) to estimate the model. Based on the results, the lack of difference between "energy production" and "energy consumption", has a positive effect on the economic growth of selected Middle Eastern energy exporting countries . Also, "national energy supply ability", "national energy structure", "renewable energy consumption", "carbon dioxide emissions from fossil energy consumption", "political stability" and "oil price" also have a positive effect on the economic growth of these countries. But the amount of "energy intensity" and "the ratio of carbon dioxide emissions to GDP" had a negative impact on their economic growth.

Keywords

• energy security
• crude oil
• economic growth
• estimated- generalized leas square
• panel - corrected standard error