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Energy Consumption, Economic Growth, Financial Development and Trade Openness in Turkey: Maki Cointegration Test

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  • Mehmet Akif Destek

    (Gaziantep University, Department of Economics, Sehitkamil, Gaziantep, Turkey)

Abstract

This paper investigates the relationship between energy consumption, economic growth, energy prices, financial development and trade openness in Turkey for 1960-2011. The Maki cointegration test under multiple structural breaks and VECM Granger causality test are employed to determine cointegration and causality relations. The results reveal that economic growth and trade openness positively, financial development and energy prices negatively affect energy consumption in the long-run. The bidirectional causality exists between energy consumption and economic growth and financial development causes energy consumption for the long-run in Turkey.

Suggested Citation

  • Mehmet Akif Destek, 2015. "Energy Consumption, Economic Growth, Financial Development and Trade Openness in Turkey: Maki Cointegration Test," Bulletin of Energy Economics (BEE), The Economics and Social Development Organization (TESDO), vol. 3(4), pages 162-168, December.
  • Handle: RePEc:ijr:beejor:v:3:y:2015:i:4:p:162-168
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    References listed on IDEAS

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    Cited by:

    1. Shahbaz, Muhammad & Hoang, Thi Hong Van & Mahalik, Mantu Kumar & Roubaud, David, 2017. "Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis," Energy Economics, Elsevier, vol. 63(C), pages 199-212.
    2. Benkraiem, Ramzi & Lahiani, Amine & Miloudi, Anthony & Shahbaz, Muhammad, 2019. "The asymmetric role of shadow economy in the energy-growth nexus in Bolivia," Energy Policy, Elsevier, vol. 125(C), pages 405-417.
    3. Muhammad Shahbaz & Mehmet Akif Destek & Michael L. Polemis, 2018. "Do Foreign Capital and Financial Development Affect Clean Energy Consumption and Carbon Emissions? Evidence from BRICS and Next-11 Countries," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 68(4), pages 20-50, October-D.
    4. Noh, Nadia Mohd & Masih, Mansur, 2017. "The relationship between energy consumption and economic growth: evidence from Thailand based on NARDL and causality approaches," MPRA Paper 86384, University Library of Munich, Germany.
    5. Pan, Xiongfeng & Uddin, Md. Kamal & Saima, Umme & Guo, Shucen & Guo, Ranran, 2019. "Regime switching effect of financial development on energy intensity: Evidence from Markov-switching vector error correction model," Energy Policy, Elsevier, vol. 135(C).
    6. Roubaud, David & Shahbaz, Muhammad, 2018. "Financial Development, Economic Growth, and Electricity Demand: A Sector Analysis of an Emerging Economy," MPRA Paper 87212, University Library of Munich, Germany, revised 06 Jun 2018.
    7. Mohamed Abdouli and Sami Hammami, 2017. "Exploring Links between FDI Inflows, Energy Consumption, and Economic Growth: Further Evidence from MENA Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 42(1), pages 95-117, March.
    8. Destek, Mehmet Akif, 2017. "Financial development and energy consumption nexus in emerging economies," MPRA Paper 106956, University Library of Munich, Germany.

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    More about this item

    Keywords

    Energy; Growth; Finance; Trade;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • F1 - International Economics - - Trade
    • P33 - Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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