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The Impacts of Economic Globalization and Financial Development on Turkey’s Carbon Dioxide Emissions: Do Multi-Dimensional Indices Provide Fresh Evidence?

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  • Alper Karasoy

    (Afyon Kocatepe Universitesi, Iktisadi ve Idari Bilimler Fakultesi, Iktisat Bolumu, Afyonkarahisar, Turkiye)

Abstract

This research investigates the environmental impacts of economic globalization and financial development in Turkey by considering multidimensional indices. Three models are estimated in this research for the 1980-2016 period by employing the augmented autoregressive distributed lag (augmented ARDL) bounds testing procedure. According to the findings, in the long run (LR), economic and financial globalization do not affect Turkey’s carbon dioxide emissions, whereas trade globalization decreases them. Additionally, in the short-run (SR), economic, trade, and financial globalization do not impact Turkey’s carbon emissions. Moreover, financial development intensifies carbon dioxide emissions either in the LR or in the SR. These results, coupled with the evidence retrieved from control variables (income, income squared, energy consumption, industrialization, and urbanization), are utilized to put forward various policy suggestions.

Suggested Citation

  • Alper Karasoy, 2021. "The Impacts of Economic Globalization and Financial Development on Turkey’s Carbon Dioxide Emissions: Do Multi-Dimensional Indices Provide Fresh Evidence?," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 8(2), pages 75-100, July.
    • Handle: RePEc:ist:iujepr:v:8:y:2021:i:2:p:75-100
    DOI: 10.26650/JEPR861293
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    References listed on IDEAS

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    1. Tamazian, Artur & Chousa, Juan Piñeiro & Vadlamannati, Krishna Chaitanya, 2009. "Does higher economic and financial development lead to environmental degradation: Evidence from BRIC countries," Energy Policy, Elsevier, vol. 37(1), pages 246-253, January.
    2. Mishkin, Frederic S., 2009. "Globalization and financial development," Journal of Development Economics, Elsevier, vol. 89(2), pages 164-169, July.
    3. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    4. Robert McNown & Chung Yan Sam & Soo Khoon Goh, 2018. "Bootstrapping the autoregressive distributed lag test for cointegration," Applied Economics, Taylor & Francis Journals, vol. 50(13), pages 1509-1521, March.
    5. Ozturk, Ilhan & Acaravci, Ali, 2013. "The long-run and causal analysis of energy, growth, openness and financial development on carbon emissions in Turkey," Energy Economics, Elsevier, vol. 36(C), pages 262-267.
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    More about this item

    Keywords

    Carbon dioxide emissions; economic globalization index; financial development index; Turkey; augmented ARDL approach JEL Classification : C51; F64; Q56;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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