Investigating the Relationship between Energy Consumption and Economic Growth Using Toda-Yamamoto Causality Test: The Case of Kazakhstan and Azerbaijan
Lukhmanova G. Urazymbetov B. Sarsenova A. Zaitenova N. Seitova V. Baisholanova K. Bolganbayev A.
22 December 2025Econjournals
International Journal of Energy Economics and Policy
2025#15Issue 1374 - 383 pp.
This study examines the relationship between energy consumption and economic growth in Kazakhstan and Azerbaijan using the Toda-Yamamoto causality test. Following their independence, both countries implemented significant structural reforms to transition to a market economy, recognizing the efficient use of energy resources as a strategic component for economic growth. Kazakhstan benefited from its abundant oil and natural gas reserves, resulting in an increased economic growth rate. In contrast, Azerbaijan fostered its economic development through a growth model centered on energy exports. The research analyzes the impact of oil and renewable energy consumption on economic growth through various models. The findings indicate a significant causal relationship between energy consumption and economic growth in Kazakhstan, while this relationship is not statistically significant in Azerbaijan. Consequently, the study concludes that energy consumption is a crucial factor for economic growth in Kazakhstan. Furthermore, the research explores how structural differences between energy consumption and economic growth influence the time needed to reach equilibrium. Results show that Kazakhstan achieves equilibrium in a shorter timeframe compared to Azerbaijan. This study aims to enhance the understanding of growth dynamics, particularly in energy-rich countries, by highlighting the effects of energy consumption on economic growth and the implications of different energy policies on this relationship.
Azerbaijan , Economic Growth , Energy Consumption , Gross Domestic Product , Kazakhstan , Toda-Yamamoto Causality Test
Text of the article Перейти на текст статьи
Zhetysu University named after I. Zhansugurov, Taldykorgan, Kazakhstan
PhD candidate, Corvinus University of Budapest, Budapest, Hungary
International Taraz Innovative Institute named after Sherkhan Murtaza, Taraz, Kazakhstan
University of International Business, Almaty, Kazakhstan
M. Auezov South Kazakhstan University, Shymkent, Kazakhstan
Al-Farabi Kazakh National University, Almaty, Kazakhstan
Khoja Akhmet Yassawi International Kazakh-Turkish University, Turkestan, Kazakhstan
Zhetysu University named after I. Zhansugurov
PhD candidate
International Taraz Innovative Institute named after Sherkhan Murtaza
University of International Business
M. Auezov South Kazakhstan University
Al-Farabi Kazakh National University
Khoja Akhmet Yassawi International Kazakh-Turkish University
10 лет помогаем публиковать статьи Международный издатель
Книга Публикация научной статьи Волощук 2026 Book Publication of a scientific article 2026