Abstract:

From the early ages to the present day, energy is one of the key factors of social and economic development. Energy needs to be provided continuously and sustainably to ensure economic growth and sustainability. Energy consumption is closely related to economic performance. In parallel with the increase in income and social welfare, energy consumption is significantly increasing. Financial infrastructure has the power to increase economic growth and to affect energy demand. In particular, many studies show that energy and financial development increases the growth process in an economy. Thus, financial development, through economic growth, indirectly affects energy consumption. This impact can be negative or positive depending on the direction of economic growth. In this study, we tried to evaluate the relationship between the countries members of the Southeast Asian Union (ASEAN) and China, Japan and South Korea between 1985-2013, financial developments and economic growth by panel data analysis. The study selected the variables expressed as the rate of bank deposits/GDP (%) and the rate of private sector loans/GDP (%) as financial development indicators. The result of the analysis is that in addition to the existence of the integration relationship from economic growth to energy consumption to private sector loans, one-way causes appear, from bank deposits to energy consumption and from energy consumption to private sector loans the right causes appear. There is also a two-way causal relationship between the loans given to the private sector and the bank deposits.

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