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Published on: March 20, 2012
The role of financial systems in energy demand: A comparison of developed and developing countries
Setareh Katircioglu1, Cihat Köksal2, Salih Katircioglu3
1Faculty of Economics & Administrative Sciences, The University of Kyrenia, P.O. Box: 9000, Karakum, Kyrenia, North Cyprus, Via Mersin 10, Turkey.
Abstract:
This study investigates the role of the financial system in energy demand in the cases of developed and developing countries. Time-series analyses are carried out using the annual data period from 2000 to 2015. Results indicate that the financial system and financial markets are long-term catalysts for energy consumption in both groups under consideration. Results show that domestic credits by banks positively impact energy demand in developing countries, while this is money supply impacting positively on energy demand in the case of developed nations. The results of this study reveal important policy implications.
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