Energy Productivity Convergence in Eastern European Countries: A Panel Data Approach

ABSTRACT

This paper empirically investigates energy productivity convergence across Eastern European Countries. The analysis is performed by using two different models of β-convergence and panel data methods. Analysis reveals that a 1% decrease in energy productivity of the initial year and the previous year associates with a 1.4059% increase in the average annual growth rate of energy productivity calculated relative to the initial year and a 1.4830% increase in the growth rate of energy productivity calculated relative to the previous year. These findings support energy productivity convergence among sample countries; however, β-coefficients indicate to the weakness of this convergence.

KEYWORDS:

• β-convergence
• Eastern European countries
• energy productivity convergence
• panel data

JEL Classification:

• C23
• Q43

Disclosure of Potential Conflicts of Interest

No potential conflict of interest was reported by the author(s).