The impact of renewable energy consumption on unemployment rates in Uzbekistan: An ARDL approach
-
Author(s)Fozil XolmurotovLink to ORCID Index: https://orcid.org/0000-0003-2745-1832
,
Obidjon KhamidovLink to ORCID Index: https://orcid.org/0000-0003-4902-759X
,
Sukhrob DavlatovLink to ORCID Index: https://orcid.org/0000-0001-9154-9688
,
Ergash IbadullaevLink to ORCID Index: https://orcid.org/0000-0002-7059-2510
,
Xolilla XolmuratovLink to ORCID Index: https://orcid.org/0000-0002-8082-1006
,
Alisher SherovLink to ORCID Index: https://orcid.org/0000-0001-7383-6229
,
Gulsanam ArabovaLink to ORCID Index: https://orcid.org/0009-0002-9358-721X
-
DOIhttp://dx.doi.org/10.21511/ee.16(1).2025.06
-
Article InfoVolume 16 2025, Issue #1, pp. 78-88
- 163 Views
-
42 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This study investigates the intricate interplay between the utilization of renewable energy sources and the fluctuations in unemployment rates in Uzbekistan during the period from 2000 to 2022, utilizing the Autoregressive Distributed Lag model. The analysis leverages World Bank data to explore both short-term and long-term impacts, offering critical insights for policymakers and stakeholders. The findings reveal that an increase in renewable energy consumption has a statistically significant and negative impact on unemployment rates in the long run, with a 1% rise in renewable energy usage leading to a 1.86% decrease in unemployment. In addition, gross fixed capital formation and government expenditure significantly contribute to job creation, while domestic credit to the private sector shows a positive association with unemployment, suggesting inefficiencies in credit allocation. The results emphasize the crucial role of strategic investments in renewable energy as a pathway to address economic and environmental challenges. By promoting renewable energy initiatives, Uzbekistan can align its economic growth with sustainability goals, reduce carbon emissions, and create employment opportunities. This study provides empirical evidence supporting the expansion of renewable energy infrastructure as a means to foster economic development and social well-being. It also underscores the necessity of enhancing financial policy frameworks to ensure efficient credit distribution and maximize the employment benefits of renewable energy projects. The policy recommendations derived from this study advocate for targeted investments, financial sector reforms, and the development of specialized training programs to cultivate a skilled workforce in renewable energy sectors.
- Keywords
-
JEL Classification (Paper profile tab)Q20, C50
-
References33
-
Tables7
-
Figures0
-
- Table 1. Descriptive statistics
- Table 2. Correlation analysis
- Table 3. Unit root tests: With intercept only
- Table 4. Bound test results
- Table 5. Long-run coefficients ARDL (1,1,0,0,0)
- Table 6. ECM form
- Table 7. Diagnostic tests
-
- Abdulkadr, A. A., Asnakew, Y. W., Sendkie, F. B., Workineh, E. B., & Asfaw, D. M. (2024). Analyzing the dynamics of monetary policy and economic growth in Ethiopia: An autoregressive distributed lag (ARDL) approach. Discover Sustainability, 5(1), Article 90.
- Abonazel, M. R., & Elnabawy, N. (2020). Using the ARDL bound testing approach to study the inflation rate in Egypt. Economic Consultant, 31(3), 24-41.
- Al-Adayleh, R. M. (2015). Investigation the equilibrium relationship between micro and macroeconomic variables and Amman Stock Exchange (ASE) Index through ARDL model (The bound test approach). International Journal of Business, 2(1), 55-61.
- Apergis, N., & Salim, R. (2015). Renewable energy consumption and unemployment: Evidence from a sample of 80 countries and nonlinear estimates. Applied Economics, 47(52), 5614-5633.
- Azam, A., Rafiq, M., Shafique, M., & Yuan, J. (2023). Interpreting the dynamic nexus between green energy, employment, fossil fuel energy, and Human Development Index: A panel data investigation. Energies, 16(7), Article 3132.
- Baum, C. F. (2023). XTTEST2: Stata module to perform Breusch-Pagan LM test for cross-sectional correlation in panel data model. Statistical Software Components (S415702). Boston College Department of Economics.
- Bertsatos, G., Sakellaris, P., & Tsionas, M. (2023). A panel bounds testing procedure. Theoretical Economics Letters, 13(7), 1765-1779.
- Ceesay, E. K., Biagie, C., & Bittaye, L. (2022). The Impact of General Government Final Consumption Expenditure- Economics Growth nexus for the Gambia. Energy and Environment Research, 12(2), 1-26.
- Gerrard, W. J., & Godfrey, L. G. (1998). Diagnostic checks for single-equation error-correction and autoregressive distributed lag models. The Manchester School, 66(2), 222-237.
- Godfrey, L. G., & Tremayne, A. R. (1998). Checks of model adequacy for univariate time series models and their application to econometric relationships. Econometric Reviews, 7(1), 1-42.
- Hegelund, E., & Taalbi, J. (2023). What determines unemployment in the long run? Band spectrum regression on ten countries 1913–2016. Structural Change and Economic Dynamics, 64, 144-167.
- Ibadullaev, E., Rajabov, A., Matyakubova, D., Yakubov, A., & Yusubov, I. (2024). Empirical analysis of renewable and non-renewable energy resources consumption impact on economic development in Uzbekistan. BIO Web of Conferences, 82, 050.
- Koyuncu Çakmak, T., Beşer, M. K., & Alola, A. A. (2023). Environmental effect of high-, upper, and lower middle-income economies’ energy mix: Is there a trade-off between unemployment and environmental quality? Energy & Environment, 36(2), 851-869.
- Kozar, Ł. J., Matusiak, R., Paduszyńska, M., & Sulich, A. (2022). Green Jobs in the EU renewable energy sector: Quantile regression approach. Energies, 15(18), Article 6578.
- Meyer, D. F., & Sanusi, K. A. (2019). A causality analysis of the relationships between gross fixed capital formation, economic growth and employment in south africa. Studia Universitatis Babeș-Bolyai Oeconomica, 64(1), 33-44.
- Osei, B., Kunawotor, M. E., & Kulu, E. (2023). Renewable energy production and employment: Comparative analysis on European and Asian countries. International Journal of Energy Sector Management, 17(4), 761-778.
- Panopoulou, E., & Pittis, N. (2004). A comparison of autoregressive distributed lag and dynamic OLS cointegration estimators in the case of a serially correlated cointegration error. The Econometrics Journal, 7(2), 585-617.
- Pasara, M. T., & Garidzirai, R. (2020). Causality effects among gross capital formation, unemployment and economic growth in South Africa. Economies, 8(2), Article 26.
- Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289-326.
- Pham, T. K. T. (2024). Impact of government expenditure on unemployment in Asian countries: does institutional quality matter? International Journal of Development Issues.
- Qodirov, A., Urakova, D., Amonov, M., Masharipova, M., Ibadullaev, E., Xolmurotov, F., & Matkarimov, F. (2024). The dynamics of tourism, economic growth, and CO2 emissions in Uzbekistan: An ARDL approach. International Journal of Energy Economics and Policy, 14(6), 365-370.
- Rawal, I., Jain, A., & Singh, H. (2021). Unemployment and its Relation with Gross Capital Formation and Economic Growth in India: A Critical Analysis. International Journal of Early Childhood Special Education (INT-JECSE), 13(1), 298-306.
- Rois, R., Basak, T., Rahman, M. M., & Majumder, A. K. (2012). Modified Breusch-Godfrey test for restricted higher order autocorrelation in dynamic linear model – A distance based approach. The International Journal of Business and Management, 7(17).
- Saidmamatov, O., Matyakubov, U., Day, J., Marty, P., Hodjaniyazov, E., Ibadullaev, E., Bekjanov, D., Matniyozov, M., & Matyusupov, B. (2021). Impact of Covid-19 on the tourism industry of Uzbekistan and state support during the pandemic. In J.S. Chen (Ed.), Advances in Hospitality and Leisure (vol. 17, pp. 163-174). Leeds: Emerald Publishing Limited.
- Sánchez Diéguez, M., Fattahi, A., Sijm, J., Morales España, G., & Faaij, A. (2021). Modelling of decarbonisation transition in national integrated energy system with hourly operational resolution. Advances in Applied Energy, 3, Article 100043.
- Saraireh, S. (2020). The Impact of Government Expenditures on Unemployment: A Case Study of Jordan. Asian Journal of Economic Modelling, 8(3), 189-203.
- Saribayevich, X. F., Sariyevich, X. X., Davlatov, S., Turobova, H., & Ruziyev, S. (2024). Analysis of factors affecting CO2 emissions: In the case of Uzbekistan. International Journal of Energy Economics and Policy, 14(4), 207-215.
- Sergi, B. S., Balashova, S., & Ratner, S. (2023). The Labour Share, Government Expenditure and Income Inequality of Post-Soviet Countries. Economies 11(12), 288.
- Shukur, G. (2000). The robustness of the systemwise breusch-godfrey autocorrelation test for non-normal distributed error terms. Communications in Statistics – Simulation and Computation, 29(2), 419-448.
- Sinha, J. K. (2022). Government expenditure and Its Effect on National Income and Employment in India. The Journal of Advanced Research in Economics and Business Management, 9(1), 1-13.
- Wu, H., Mentel, U., Lew, G., & Wang, S. (2023). What drives renewable energy in the group of seven economies? Evidence from non-parametric panel methods. Economic Research – Ekonomska Istraživanja, 36(1), 1708-1734.
- Xolmurotov, F. S., Xolmuratov, X. S., & Yakubova, Y. R. (2024). Assessment of the impact of agriculture on the regional socio-economic development. E3S Web of Conferences, 548, Article 01003.
- Zainodin, H. J., & Yap, S. J. (2013). Overcoming multicollinearity in multiple regression using correlation coefficient. AIP Conference Proceedings, 1557(1), 416-419.
-
Impact on poverty and income inequality in Malaysia’s economic growth
Rabiul Islam ,
Ahmad Bashawir Abdul Ghani ,
Irwanshah Zainal Abidin ,
Jeya Malar Rayaiappan
doi: http://dx.doi.org/10.21511/ppm.15(1).2017.05
Problems and Perspectives in Management Volume 15, 2017 Issue #1 pp. 55-62 Views: 12406 Downloads: 5915 TO CITE АНОТАЦІЯPoverty and income inequality are extreme issues that still exist in Malaysia. Any rise in poverty and income inequality definitely affect economic growth. There are many great efforts taken by the government of Malaysia to eradicate poverty and to reduce the gap of income inequality which occurs since 1970’s. The incidence of poverty and income inequality is higher in rural areas compared to urban areas. This paper is mainly to study the level of poverty and income inequality in Malaysia together with government intervention to develop Malaysia’s economic growth. The research is focused among the working people at Ipoh, Perak. In this paper, questionnaire forms are being distributed to get information regarding the issue of poverty and income inequality. It also looks into the strategies taken by the government of Malaysia to eradicate poverty and income inequality. Few recommendations are given in terms of education policy, financial aid and assistance from government and non-government organization (NGO) to upgrade the standard and quality of living among the poor and lower-income group of people.
-
Impact of inflation on economic growth: evidence from Nigeria
Anthony Olugbenga Adaramola ,
Oluwabunmi Dada
doi: http://dx.doi.org/10.21511/imfi.17(2).2020.01
Investment Management and Financial Innovations Volume 17, 2020 Issue #2 pp. 1-13 Views: 9994 Downloads: 5870 TO CITE АНОТАЦІЯIn an attempt to examine the influence of inflation on the growth prospects of the Nigerian economy, the study employs the autoregressive distributed lag on the selected variables, i.e. real gross domestic product (GDP), inflation rate, interest rate, exchange rate, degree of economy`s openness, money supply, and government consumption expenditures for the period 1980–2018. The study findings indicate that inflation and real exchange rate exert a significant negative impact on economic growth, while interest rate and money supply indicate a positive and significant impact on economic growth. Other variables in the model depict no influence on the economic growth of Nigeria. The causality result shows the unidirectional relationships between interest rate, exchange rate, government consumption expenditures and gross domestic product. However, inflation and the degree of openness show no causal relationship with gross domestic product. As a result, the study recommends that a more pragmatic effort is needed by the monetary authorities to target the inflation vigorously to prevent its adverse effect by ensuring a tolerable rate that would stimulate the economic growth of Nigeria.
-
Formalization of the impact of imbalances in the movement of financial resources on economic growth of countries in Central and Eastern Europe
Serhiy Kozmenko ,
Maxim Korneyev
doi: http://dx.doi.org/10.21511/afc.01(1).2017.06
Accounting and Financial Control Volume 1, 2017 Issue #1 pp. 48-58 Views: 8237 Downloads: 1434 TO CITEThe article deals with the impact of financialization on economic growth in countries of Central and Eastern Europe. It determinesthe impact of imbalances in the movement of financial resources caused by financialization on economic growth of these countries. It proves that the implementation of measures aimed at increasing the openness of the economy and maintaining solvent demand have a positive impact on economic growth of the surveyed countries in the long run. It also proves the importance of developing a set of measures of strategic nature regulating imbalances in the movement of financial resources caused by financialization.
