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The dynamic relationship between Financial Development and the Energy Demand in North Cyprus: Evidence from ARDL Bounds and Combine Cointegration Tests

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  • Tursoy, Turgut

Abstract

This paper investigates the dynamic relationship between financial development, energy demands, economic growth and total trade with the ARDL Bounds and Combined cointegration approaches in North Cyprus for the period of 1977Q1 – 2016Q4. The empirical results provide evidences for the long-run and short-run relationship between the concern variables. All the techniques such as cointegration and innovation accounting method supporting the relationship between variables. Positive innovation in GDP is connected with increase in financial development and energy demands. Energy demands response positively for the shocks from GDP and Financial development, and financial development responses just only GDP and itself.

Suggested Citation

  • Tursoy, Turgut, 2018. "The dynamic relationship between Financial Development and the Energy Demand in North Cyprus: Evidence from ARDL Bounds and Combine Cointegration Tests," MPRA Paper 88324, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:88324
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    References listed on IDEAS

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    More about this item

    Keywords

    Financial development; GDP; Energy; Trade;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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