Generolo Jono Žemaičio Lietuvos karo akademija

There is major concern with Lithuania’s industrial development because its manufacturing structure is increasingly dependent on the consumption of energy. In spite of the Lithuanian energy intensity decrease more than 35 percent in the last decade, the energy required to produce a unit of output in Lithuania twice exceeds the average of the European Union countries.

This study consists of two research aspects. First of all, the author analyses the relationship of energy consumption and economic growth in the context of 13 selected countries in the period of year between 1990 and 2010. Secondly, using statistical techniques the paper takes into account cross-sectoral dependence when analyzing the relationship between energy consumption and economic structures of the same countries. Based on the energy consumption, the countries are divided into three groups: low energy consumption group, middle energy consumption group, and high energy consumption one. Statistical methods, including correlation analysis are employed for the estimation of the structural changes of economy and relationship between energy consumption and economic structure in each of the three groups. In general, the results of this study indicate that energy consumption is closely related to all economic activities for all groups of countries; however the case of Lithuania reveals the absence of relationship between energy consumption and industrial sector. Moreover, in the context of comparative analysis, China, as a high energy consumption country, has a completely different picture of economic structure as well as relation between energy consumption and structural changes. Economic sectors, such as industry, services and agriculture depend on energy resources, but in different degree in these three groups of countries.