The Impact of Investment and Labor Participation on Energy Consumption: A Panel Analysis on Selected OIC Countries
DOI:
https://doi.org/10.58968/es.v2i1.515Keywords:
Panel Analysis, Gross Fixed Capital Formation, Energy Consumption, Labor Force Participation, OIC CountriesAbstract
A country's economy cannot be separated from economic activity and energy consumption. A country's economic activity increases in proportion to its income. Furthermore, countries will respond to increased economic activity by changing their energy use. This research aims to assess how much extra energy is being utilized by economic activity to maintain the current environment. The results of the analysis show that the gross fixed capital creation variable has a major impact on the energy consumption of OIC countries. The labor force participation of individuals aged 15 to 24 also has a significant effect on energy use. Energy consumption can therefore be increased by raising investment and labor force participation. An annual data series (2010–2015) is used in this investigation. Panel data is the term for the sort of data that is utilized. Further research subjects can do dynamic panel data (countries) analysis by including factors not included in the research mode.
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