ABSTRACT
The aim of this study is to explore the linkage between energy consumption, CO2 emissions, economic growth, trade openness and financial development by utilizing multivariate time series techniques for the periods 1960 and 2013. In order to investigate the dependency between the variables vector error correction model is used. The cointegration test results indicates that these variables are related in the short run and in the long run. Granger causality tests indicates that there exists a bi-directional causality running from CO2 to economic growth and trade to economic growth. In addition, this study enlights the unidirectional relation between economic growth and financial development.
