EGE ACADEMIC REVIEW, vol.17, no.1, pp.13-22, 2017 (ESCI)
Use of electricity energy, which is one of the most important inputs of production process, its importance increases significantly as a result of globalization. Therefore the effect of capital, employment and electricity consumption on production level must be investigated. Accordingly, this study is aimed to shed light upon relationships between Turkey's industrial production, capital, employment and electricity consumption, by Vector Error Correction Model and Variance Decomposition for the period 1986-2011. As a result, the effect of electricity consumption, capital and employment on industrial sector production was founded positively. Considering that Turkey is expected to have more investment which will require more electricity consumption, a positive effect on production level.