The relationships between energy consumption and financial openness, trade openness and financial development in turkey

The aim of this study is put forward the relationship between energy consumption and financial openness, trade openness and financial development for the period 1970-2016 of Turkey and Italy. In this context energy consumption per capita used as dependent variable and domestic private credit per capita, trade openness and financial openness used as independent variables. In the study the cointegration relationship between energy consumption and given macroeconomic variables is analyzed by ARDL Border Test and founded a longterm relationship between variables for both countries. Study continued with error correction model because of the long term relationship. According to the error correction model results, there is a significant and positive effect on the energy consumption of trade openness rate for Turkey and financial openness rate for Italy. Besides this, findings show that there is a positive and significant relationship of financial development over the energy consumption.