Abstract:

Energy is essential for the economy and is important for economic growth. Energy is a fundamental need for human survival and economic growth, and energy is the foundation of modern societies. Economic development is the blood vessel and the back bone. It plays an important role in increasing trade and increasing growth levels. According to literature, it increases its level of growth. In economic literature, the dynamic relationships that include economic growth, trade, energy and financial development are attracted. The aim of the study in this context is to examine the existence of a hidden relationship between financial development, energy consumption and economic growth in the E-7 countries (Brazil, China, India, Indonesia, Mexico, Russia and Turkey) for the period 2003-2016. For this purpose, the hidden equalization analysis developed by Hatemi-J (2011) and the Asymmetric Causative Analysis by Hatemi-J (2012) were used. According to the results of the analysis, a hidden co-integration relationship between the negative components has been detected. On the other hand, an unilateral cause from economic growth and financial development to energy consumption has been identified.

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