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The Relationship Between CO2 Emissions and Gross Capital Formation in Turkey and Kuwait

Author

Listed:
  • Satrovic Elma

    (Associate Professor, University of Novi Pazar, SerbiaAssistant Professor, Çağ University)

  • Muslija Adnan

    (PhD Independent Researcher, Bosnia and Herzegovina)

  • Abul Sadeq J.

    (PhD Independent Economic Advisor, Kuwait)

Abstract

The aim of this paper is to explore the potential link between gross capital formation and CO2 emissions by using the Toda and Yamamoto approach. The annual time-series data were collected for the period 1971-2014. Due to the fact that Kuwait aims to become a major trading hub by 2035, it has made significant efforts to improve the infrastructure. Moreover, Turkey is also making strong efforts to improve the manufacturing sector as well as infrastructure, and represents an important trading hub that links Europe with the Middle East. Thus, Turkey and Kuwait are expected to strengthen their economic ties and expand trade, which was the motivation for comparing the link of interest in these two countries. The study’s findings confirm the bidirectional links between all of the variables of interest not only in the case of Turkey but also in the case of Kuwait, suggesting some important policy implications.

Suggested Citation

  • Satrovic Elma & Muslija Adnan & Abul Sadeq J., 2020. "The Relationship Between CO2 Emissions and Gross Capital Formation in Turkey and Kuwait," South East European Journal of Economics and Business, Sciendo, vol. 15(2), pages 28-42, December.
    • Handle: RePEc:vrs:seejeb:v:15:y:2020:i:2:p:28-42:n:3
    DOI: 10.2478/jeb-2020-0013
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    Cited by:

    1. Eleftherios Thalassinos & Marta Kadłubek & Le Minh Thong & Tran Van Hiep & Erginbay Ugurlu, 2022. "Managerial Issues Regarding the Role of Natural Gas in the Transition of Energy and the Impact of Natural Gas Consumption on the GDP of Selected Countries," Resources, MDPI, vol. 11(5), pages 1-22, April.

    More about this item

    Keywords

    CO2 emissions; energy; gross capital formation; Toda and Yamamoto approach;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • 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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