The relationship between renewable energy consumptions,financial development and economic growth: An asymmetric analysis for the Turkish economy

Annual data were used to investigate the relationship between renewable energy consumption, financial development and economic growth for the period 1960-2017 in Turkey. In addition to renewable energy and financial development, capital formation, labor force and trade openness variables are also included in the economic growth model, taking into account the theoretical and empirical literature. In addition to renewable energy and financial development, capital formation, labor force and trade openness variables are also included in the economic growth model, taking into account the theoretical and empirical literature. NARDL cointegration results determined the existence of an asymmetric or nonlinear cointegration relationship between the variables according to both t-statistics and F statistics. According to this result; There is an asymmetrical relationship between renewable energy consumption, financial development, capital formation, labor force, trade openness and economic growth in the long run. According to NARDL long-term estimation results; In the long run, it is concluded that increases in renewable energy consumption increase economic growth, and in the same way, increases in financial development increase economic growth. It has been concluded that while positive increases in trade openness in the long run reduce economic growth, negative shocks reduce economic growth. However, since the trade openness + coefficient is greater than the trade openness – coefficient, the effect of the + coefficient is interpreted. In this case, it is concluded that trade openness reduces economic growth in the long run. It has been concluded that in the long run, capital increases and labor force increases also increase economic growth. According to the results of the Toda-Yamamoto causality test, one-way causality was found from economic growth to capital. Two-way causality was found between financial development and economic growth. Unidirectional causality was found from economic growth to renewable energy consumption, from economic growth to total population. These causality can be understood as linear or symmetric causality. According to Hatemi-J asymmetric causality results; Asymmetric causality was found from negative shocks of capital to negative shocks of economic growth Asymmetric causality relationship was found from negative shocks of economic growth to both positive and negative shocks of financial development. Asymmetric causality was found from positive shocks of economic growth to positive shocks of labor force. Asymmetric causality is found from positive shocks related to economic growth to negative shocks of trade openness, from negative shocks related to economic growth to positive shocks related to trade openness. Asymmetric causality was found from negative shocks of trade openness to negative shocks of economic growth. From the positive shocks of economic growth to the negative per capita shocks of renewable energy, Asymmetric causality was found from negative shocks of economic growth to positive shocks of renewable energy. Asymmetric causality wasn't found from all shocks of renewable energy to all shocks of economic growth