Studying the Dynamic Correlation Between Economic Growth and the Energy System Using Wavelet Analysis
DOI:
https://doi.org/10.51699/cajitmf.v7i2.1200Keywords:
Uzbekistan Economy, Energy Sector, Wavelet Transformation, Frequency-Domain Analysis, Time Series, Dynamic Relationship, Economic Growth, Energy Consumption, Sustainable DevelopmentAbstract
This study investigates the dynamic relationship between economic growth and the energy system in Uzbekistan using a time–frequency analytical framework. Unlike traditional econometric approaches that focus mainly on average long-run relationships, this research applies wavelet transformation techniques to capture the evolving correlation between macroeconomic growth and key energy indicators across different time horizons. In particular, the wavelet coherence method is employed to identify short-, medium-, and long-term co-movements and lead–lag interactions between economic growth and variables such as natural gas consumption, unemployment, and foreign investment. The empirical findings reveal that the relationship between the energy sector and economic growth is not constant over time but varies significantly across different periods and frequencies. Strong correlations are observed in several medium-term cycles, highlighting the important role of energy resources in supporting economic expansion. The results provide valuable scientific insights into the structural interaction between the energy system and macroeconomic dynamics and offer practical implications for improving energy policy design, enhancing energy efficiency, and supporting sustainable economic development in Uzbekistan.
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