Abstract:

Energy has been the fundamental factor used by humanity for the fulfilment of its basic needs, such as being able to exist, maintain, preserve, accommodate and improve the quality of life, from yesterday to today. The importance of energy in every stage of consumption and production is increasing every day. Therefore, countries that have the power of the world are constantly developing. The crisis in energy supply in recent years has led the countries to new alternative energy sources. The aim of this study is to explore the asymmetric relationship between foreign direct investments and renewable energy consumption for the Turkish economy in the period 1980-2019. The hidden integration approach from the new generation tests and Hatemi & Irrandoust integration test have been used. The stagnation analysis of the variables has been tested with ADF and KPSS unit root tests. According to Hatemi J & Irandoust, the equalization test found that the variables were associated in a long period of time. The FMOLS and DOLS methods have identified long-term indicators of the variables. Finally, the hidden error correction model was applied, the presence of an asymmetrical causality to the component of direct foreign investments - renewable energy consumption from the component was identified. The results will be effective in the presentation of policy suggestions.

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