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Estimating the Impact of the Financial Development on Energy Consumption: A Co-integration Analysis

Author

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  • Yasemin Dumrul

    (Erciyes University, Develi H seyin ahin Vocational School, Kayseri, Turkey.)

Abstract

This paper investigated the impact of financial development on energy consumption in Turkey. For this purpose, the annual data from 1961 to 2015 is examined using with Johansen Cointegration Test and Fully Modified Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Square (DOLS) Test. Test results indicate the existence of long run relationship between financial development, economic growth and energy consumption in Turkey. In addition The FMOLS and DOLS test results show that financial development and economic growth have a positive effect on energy consumption in Turkey. For this reason, policy makers should also take into account the impact of financial development on energy consumption while setting energy policies and setting targets.

Suggested Citation

  • Yasemin Dumrul, 2018. "Estimating the Impact of the Financial Development on Energy Consumption: A Co-integration Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 294-299.
    • Handle: RePEc:eco:journ2:2018-05-37
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    References listed on IDEAS

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    6. Islam, Md. Monirul & Irfan, Muhammad & Shahbaz, Muhammad & Vo, Xuan Vinh, 2022. "Renewable and non-renewable energy consumption in Bangladesh: The relative influencing profiles of economic factors, urbanization, physical infrastructure and institutional quality," Renewable Energy, Elsevier, vol. 184(C), pages 1130-1149.

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    More about this item

    Keywords

    Financial Development; Energy Consumption; Economic Growth; Co-integration; Turkey.;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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