Prague Economic Papers 2026, 35(1):56-96 | DOI: 10.18267/j.pep.908
Technology Exports and Electricity Use in Turkey: Nonlinear Frequency Evidence
- Kütahya Dumlupinar University, Department of Economics, Kütahya/ Turkey
This paper investigates the nexus between medium- and high-technology exports and electricity consumption from 2016M1 to 2025M05 in Turkey. Nonlinear features in the data lead the use of a Smooth Transition Regression model that shows entrepreneurial expansion which intensifies electricity demand, while technology exports further increase electricity consumption in the nonlinear regime. Foreign direct investment is observed to reduce energy demand in the high entrepreneurship regime. Both Bootstrap Toda-Yamamoto and Fourier Cumulative Frequency causality tests indicate unidirectional causality from technology exports to electricity use. Moreover, Wavelet Transform Coherence analysis confirms time-varying and frequency-dependent properties based on strong medium-term interactions. Overall, findings imply that augmentation of high-technology share in export basket should consider the energy-intensity of the production.
Keywords: Technology exports, Electricity consumption, Smooth transition regression, Frequency domain causality, Wavelet coherence
JEL classification: C82, E32, N7, Q43
Received: September 14, 2025; Revised: December 21, 2025; Accepted: February 8, 2026; Published: April 1, 2026 Show citation
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