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Sustainable Growth in Turkey: The Role of Trade Openness, Financial Development, and Renewable Energy Use

  • Ali AriEmail author
  • Raif Cergibozan
Reference work entry
Part of the Sustainable Development book series (SD)

Abstract

This study attempts to examine empirically, via ARDL bounds testing approach of cointegration and VECM Granger causality approach, dynamic causal relationships between economic growth, renewable energy consumption, trade openness, financial development, and capital in the case of Turkey using the time series data for the period 1960–2011. The ARDL test results indicate that there exists a long-run relationship among the variables of the model. The VECM Granger causality analysis indicates that in the long run, causality runs from renewable energy consumption, trade openness, financial development, and capital use to economic growth, while in the short run there exists bidirectional causal relationship between economic growth as the dependent variable and explanatory variables. There also is a short-run bidirectional causal relationship among other variables, except for trade openness and renewable energy. This shows the dynamic and endogenous character of economic growth in the Turkish economy. The results also provide some important policy recommendations, in particular, for the implementation of future policies on promoting energy use from renewable sources.

Keywords

Growth Trade openness Financial development Renewable energy use Turkey 

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© Springer Nature Singapore Pte Ltd. 2018

Authors and Affiliations

  1. 1.Department of EconomicsKirklareli UniversityKofcazTurkey

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