The Effect of Financial Development, Globalization, and Industrialization on Load Capacity Factor in Turkey

Yusuf Güneysu

Article Details

The Effect of Financial Development, Globalization, and Industrialization on Load Capacity Factor in Turkey

Authors:

Yusuf Güneysu

Publisher:

Gumushane University

Journal:

Gümüşhane Üniversitesi Sosyal Bilimler Dergisi Vol.14 Issue 3, pp.934-946

Document Type:

Article

Publication Date:

9/2023

Document Language:

Turkish

Document ID (Org No.):

2001300737

pISSN:

1309-7423

Keywords:

Abstract:

 This study investigates the long-term effect of economic growth, globalization, financial development, and industrialization on the load capacity factor LCF in Turkey. In addition, the study examined whether the load capacity curve LCC hypothesis is valid. For this purpose, annual data from 1970-2018 were used. Fourier ADF unit root test, Bayer-Hanck cointegration test, Fully Modified Least Squares FMOLS, and Dynamic Least Squares DOLS techniques were used to analyze the data. Accordingly, when the results of the cointegration test were examined, it was determined that there was long-term cointegration between the series. Findings from FMOLS and DOLS approaches show that there is a U-shaped relationship between economic growth and LCF and reveal the existence of the LCC hypothesis for Turkey. In other words, the increase in per capita income harms environmental sustainability at the beginning but contributes to the improvement of environmental sustainability after a certain level is exceeded. However, it has been concluded that although globalization and financial development reduce the environmental quality, industrialization increases it. Therefore, globalization and finance policies can be adopted to encourage environmentally friendly practices can be adopted in order to ensure environmental sustainability.

 This study investigates the long-term effect of economic growth, globalization, financial development, and industrialization on the load capacity factor LCF in Turkey. In addition, the study examined whether the load capacity curve LCC hypothesis is valid. For this purpose, annual data from 1970-2018 were used. Fourier ADF unit root test, Bayer-Hanck cointegration test, Fully Modified Least Squares FMOLS, and Dynamic Least Squares DOLS techniques were used to analyze the data. Accordingly, when the results of the cointegration test were examined, it was determined that there was long-term cointegration between the series. Findings from FMOLS and DOLS approaches show that there is a U-shaped relationship between economic growth and LCF and reveal the existence of the LCC hypothesis for Turkey. In other words, the increase in per capita income harms environmental sustainability at the beginning but contributes to the improvement of environmental sustainability after a certain level is exceeded. However, it has been concluded that although globalization and financial development reduce the environmental quality, industrialization increases it. Therefore, globalization and finance policies can be adopted to encourage environmentally friendly practices can be adopted in order to ensure environmental sustainability.

 This study investigates the long-term effect of economic growth, globalization, financial development, and industrialization on the load capacity factor LCF in Turkey. In addition, the study examined whether the load capacity curve LCC hypothesis is valid. For this purpose, annual data from 1970-2018 were used. Fourier ADF unit root test, Bayer-Hanck cointegration test, Fully Modified Least Squares FMOLS, and Dynamic Least Squares DOLS techniques were used to analyze the data. Accordingly, when the results of the cointegration test were examined, it was determined that there was long-term cointegration between the series. Findings from FMOLS and DOLS approaches show that there is a U-shaped relationship between economic growth and LCF and reveal the existence of the LCC hypothesis for Turkey. In other words, the increase in per capita income harms environmental sustainability at the beginning but contributes to the improvement of environmental sustainability after a certain level is exceeded. However, it has been concluded that although globalization and financial development reduce the environmental quality, industrialization increases it. Therefore, globalization and finance policies can be adopted to encourage environmentally friendly practices can be adopted in order to ensure environmental sustainability.

 Bu çalışma, Türkiyede ekonomik büyüme, küreselleşme, finansal gelişme ve sanayileşme ile yük kapasite faktörü LCF arasındaki uzun dönem ilişkiyi araştırmaktadır. Ayrıca bu çalışmada yük kapasite eğrisi LCC hipotezinin geçerli olup olmadığı incelenmiştir. Bu amaç doğrultusunda 1970-2018 dönemine ait yıllık veriler kullanılmıştır. Söz konusu verilerin analiz edilmesi için Fourier ADF birim kök testi, Bayer-Hanck eşbütünleşme testi, Tam Düzeltilmiş En Küçük Kareler FMOLS ve Dinamik En Küçük Kareler DOLS tekniklerinden yararlanılmıştır. Buna göre çalışmada eşbütünleşme testi sonuçlarına bakıldığında seriler arasında uzun dönem eşbütünleşmenin olduğu belirlenmiştir. FMOLS ve DOLS tahmincilerinden elde edilen bulgular ise ekonomik büyüme ile LCF arasında U şeklinde bir ilişki olduğunu göstermekte ve Türkiye için LCC hipotezinin geçerliliğini ortaya koymaktadır. Diğer bir ifadeyle kişi başı gelirdeki artış başlangıçta çevresel sürdürebilirliğe zarar vermekte ancak belirli düzeyi geçtikten sonra çevresel sürdürebilirliğin artmasına katkıda bulunmaktadır. Bununla birlikte küreselleşmenin ve finansal gelişmenin çevre kalitesini azaltmasına karşın sanayileşmenin artırdığı sonucuna ulaşılmıştır. Dolayısıyla çevresel sürdürülebilirliğin sağlanabilmesi için çevre dostu uygulamaların teşvik edilmesine yönelik küreselleşme ve finans politikaları benimsenebilir.

Article Details

The Effect of Financial Development, Globalization, and Industrialization on Load Capacity Factor in Turkey

Authors:

Yusuf Güneysu

Publisher:

Gumushane University

Journal:

Gümüşhane Üniversitesi Sosyal Bilimler Dergisi Vol.14 Issue 3, pp.934-946

Document Type:

Article

Publication Date:

9/2023

Document Language:

Turkish

Document ID (Org No.):

2001300737

pISSN:

1309-7423

Load Capacity Curve

Financial Development

Globalization

IndustrializationYük Kapasite Eğrisi

Finansal Gelişme

Küreselleşme

Sanayileşme

Issues

Article Details

Authors: Yusuf Güneysu

Publisher: Gumushane University

Journal: Gümüşhane Üniversitesi Sosyal Bilimler Dergisi Vol.14 Issue 3, pp.934-946

Document Type: Article

Publication Date: 9/2023

Document Language: Turkish

Document ID (Org No.): 2001300737

pISSN: 1309-7423

Issues

Authors:

Yusuf Güneysu

Publisher:

Gumushane University

Journal:

Gümüşhane Üniversitesi Sosyal Bilimler Dergisi Vol.14 Issue 3, pp.934-946

Document Type:

Article

Publication Date:

9/2023

Document Language:

Turkish

Document ID (Org No.):

2001300737

pISSN:

1309-7423