The main purpose of this study is to investigate the relationship between electricity consumption and economic growth for uppur middle income countries that Turkey belongs. For this reason, panel data model which is formed by using electricity consumption and economic growth variables of 22 upper middle income countries for the period 1971-2014 was analyzed. In the analysis, firstly the horizontal cross-section dependence of the series was investigated by using the Pesaran and Yamagata (2008) Homohenity test. As the series were determined to contain cross-sectional and heterogeneity, it was tested by CADF unit root test method which considers the cross-sectional dependency of the analyzes and it was determined that the series were the first stationary series. The long-term relationship of the series was evaluated by Westerlund and Edgerton (2007) Co-Integration Test; There was no cointegration relationship between the series. Causality relations between variables; Dumitrescu and Hurlin (2012) panel causality test examined the power consumption and economic growth variables were determined as a bidirectional causality relationship. As a result, it is concluded that Feed Back hypothesis is valid for upper middle income countries.
Electricity Consumption, Economic Growth, Horizontal Cross Section Dependence, Panel Data Analysisi Upper Middle Income Country