Hierarchical structure of the countries based on electricity consumption and economic growth

Abstract

We investigate the hierarchical structures of countries based on electricity consumption and economic growth by using the real amounts of their consumption over a certain time period. We use of electricity consumption data to detect the topological properties of 60 countries from 1971 to 2008. These countries are divided into three subgroups: low income group, middle income group and high income group countries. Firstly, a relationship between electricity consumption and economic growth is investigated by using the concept of hierarchical structure methods (minimal spanning tree (MST) and hierarchical tree (HT)). Secondly, we perform bootstrap techniques to investigate a value of the statistical reliability to the links of the MST. Finally, we use a clustering linkage procedure in order to observe the cluster structure more clearly. The results of the structural topologies of these trees are as follows: i) we identified different clusters of countries according to their geographical location and economic growth, ii) we found a strong relation between energy consumption and economic growth for all the income groups considered in this study and iii) the results are in good agreement with the causal relationship between electricity consumption and economic growth.

arXiv comment9 pages, 5 figures, 2 tables

References in corpus (15)

• Dynamics of market correlations: Taxonomy and portfolio analysis
• Topology of correlation based minimal spanning trees in real and model markets
• Dynamic asset trees and Black Monday
• Correlation Networks Among Currencies
• Dynamic asset trees and portfolio analysis
• The Evolution of Interdependence in World Equity Markets - Evidence from Minimum Spanning Trees
• Taxonomy of Stock Market Indices
• Spanning Trees and bootstrap reliability estimation in correlation based networks
• Topology of Foreign Exchange Markets using Hierarchical Structure Methods
• Characteristics of the Korean stock market correlations
• Sector analysis for a FTSE portfolio of stocks
• Topology of the correlation networks among major currencies using hierarchical structure methods
• Correlations in commodity markets
• Group dynamics of the Japanese market
• A network approach for the scientific collaboration in the European Framework Programs