Asli Kazimova

The paper investigates the causal interaction between renewable energy consumption and manufacturing value added in Kazakhstan, a relationship of growing importance in the context of sustainable industrial development. The aim of the study is to assess the direction and nature of causality between these variables over the period from 2000 to 2021. To this end, the Toda-Yamamoto Granger causality test is applied, offering robust results regardless of the order of integration of the time series data. The empirical analysis identifies a statistically significant bidirectional causal relationship. Specifically, renewable energy consumption has a significant impact on manufacturing value added (p = 0.003), while manufacturing value added also significantly influences renewable energy consumption (p = 0.006). These findings reveal a reciprocal mechanism in which the expansion of renewable energy supports industrial growth, and industrial development, in turn, enhances renewable energy usage. The results underscore the strategic importance of integrating renewable energy policies with industrial development plans. From a policy perspective, the study provides practical insights into fostering sustainable economic growth by aligning environmental and industrial objectives in Kazakhstan.

Type of the article: Research Article

Abstract
Against the backdrop of economic stagnation, weak external demand, and rising social disparities, this study examines the determinants of economic growth in Germany. Specifically, it investigates the long- and short-run effects of gross capital formation (GCF), government expenditure on education (GEE), and income inequality (GINI) on GDP per capita (GDPPC) over the period 1996–2022. The empirical analysis applies the Autoregressive Distributed Lag (ARDL) bounds testing approach, supported by unit root tests, an error correction model (ECM), and Fully Modified Ordinary Least Squares (FMOLS) estimation. The results confirm the existence of a long-run cointegration relationship among the variables, as the F-statistic of 5.67 surpasses the upper bound critical value at the 1% significance level. The ECM results show that approximately 51.8% of short-run deviations are corrected within one year, indicating a moderate speed of adjustment toward long-run equilibrium. FMOLS estimates suggest that gross capital formation and government expenditure on education are positively associated with GDP per capita in the long run, with coefficients of 0.475 and 0.088, respectively. Income inequality also exhibits a statistically significant but relatively small positive association with economic growth (0.024). In addition, external shocks show asymmetric effects, where financial crises are associated with a 0.055 increase in GDP per capita, while pandemic-related shocks are associated with a 0.089 decrease. Overall, the findings indicate that capital formation and public education expenditure are key long-run correlates of economic growth in Germany, while inequality and external shocks play supplementary but comparatively smaller roles in shaping growth dynamics.