Abstract:

Purpose: This research aims to investigate the carbon emissions relationships with economic growth and financial development in Turkey for the period of 1990-2020. Design/Methodology: Augmented Dickey-Fuller (ADF) and Phillipp-Perron (PP) tests were used for the unit root test, the Zivot-Andrew unit root test was used for the time series and the Gregory-Hansen cointegration test was used for cointegration. For causality, Hacker and Hatemi J Bootstrap causality test, which includes Granger causality and Toda-Yamamoto tests, were performed. Analyses were performed on E-views 7.0 program. Findings: The analyses reveal that carbon emission does not reflect a statistically significant macroeconomic and financial effect in Turkey. Limitations: The sample consists of carbon emission, economic growth and financial development index variables for Turkey for the period of 1990-2020. Originality/Value: Despite the fact that the subject has been handled by many sides in various works, the literature is limited for Turkey. Therefore, this study attempts to contribute to the literature in filling this gap in this field.

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