The globalization, financial development, renewable energy, and economic growth

ABSTRACT

This study investigates the correlation among economic growth, renewable energy, energy consumption, capital fixed formation, globalization, trade openness, and urbanization for 1992 Q1–2014 Q4, using the auto-regressive distributed lag (ARDL) model in Iran. The ARDL approach demonstrates that renewable energy is positively correlated with economic growth. The results show that all the variables in the study are co-integrated and there is a long-run relationship among variables. The findings also show that the overall index of globalization has a positive effect on growth. Granger causality reports bidirectional causality among renewable energy consumption (REC), globalization, financial development, and economic growth.

KEYWORDS:

• ARDL
• economic growth
• financial development
• globalization
• Iran
• renewable energy

Acknowledgments

The authors are thankful to their university who provided expertise that greatly assisted in the research.

Funding

This paper is extracted from “The Renewable Energy Development Strategy in Iran” Project, which was supported by Economics Islamic Azad University, South Tehran Branch.

Additional information

Funding

This paper is extracted from “The Renewable Energy Development Strategy in Iran” Project, which was supported by Economics Islamic Azad University, South Tehran Branch.