The effect of solar energy production on financial development and economic growth: Evidence from 11 selected countries

ABSTRACT

The aim of this study was to investigate the impact of solar energy production on financial development and economic growth in 11 leading countries in solar energy production over the period 2000–2019. The results of the analysis indicated that solar energy production had a positive and significant impact on financial development, however, not on economic growth. It was found that the impacts of capital and direct investment variables on financial development and economic growth were positive and significant. According to Dumitrescu-Hurlin’s causality test results, a bidirectional causality relationship was determined to exist between solar energy production and financial development. Furthermore, a unidirectional causality relationship running from economic growth to solar energy production was detected. In this context, the analysis results confirmed the conservation hypothesis. The results could be a guide on solar energy production policies. By considering the impacts of solar energy production on financial development and economic growth, more effective policy decisions could be made.

KEYWORDS:

• Solar energy production
• economic growth
• financial development
• Dynamic SUR

Disclosure statement

The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.The authors declare the following financial interests/personal relationships which may be considered as potential competing interests

Correction Statement

This article has been corrected with minor changes. These changes do not impact the academic content of the article.