Skip to main page content
U.S. flag

An official website of the United States government

Dot gov

The .gov means it’s official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Access keys NCBI Homepage MyNCBI Homepage Main Content Main Navigation
. 2023 Dec 8;18(12):e0293890.
doi: 10.1371/journal.pone.0293890. eCollection 2023.

The non-linear relationship between globalization, financial development and energy consumption: Evidence from BRICS economies

Muhammad Imran  1 , Xiangyang Liu  1 , Shah Saud  2 , Muhammad Hanif Akhtar  3 , Abdul Haseeb  4 , Rongyu Wang  1 , Kamran Azam  4
Affiliations

The non-linear relationship between globalization, financial development and energy consumption: Evidence from BRICS economies

Muhammad Imran et al. PLoS One. .

Retraction in

Abstract

In the era of globalization, financial development plays a key role in socioeconomic and environmental development. However, its adverse consequences on human life, environmental hazards, and high energy consumption cannot be ignored. Thus, this study investigates the non-linear relationship between globalization, financial development, and energy consumption for BRICS economies. In doing so, we have applied second-generation tests to identify cross-sectional dependence in the data. Cross-sectional augmented Dickey-Fuller (CADF) and Cross-sectional Im-Pesaran Shin (CIPS) have been performed to find the stationary level of variables. The long-term equilibrium link between the investigated variables has been established in continuance using the Westerlund Cointegration test. The Dynamic Seemingly Unrelated Regression (DSUR) indicates that U-shaped relationships exist for financial development and globalization with energy consumption. Conversely, there is an inverted U-shaped relationship exist between economic growth and energy consumption in BRICS. The Dumitrescu-Hurlin panel causality test findings show that a unidirectional link runs from energy consumption to financial development, economic growth to energy consumption, and globalization towards energy usage. Important policy implications have also been discussed.

PubMed Disclaimer

Conflict of interest statement

The authors have declared that no competing interests exist.

Figures

Fig 1
Fig 1. Box plots for log EC, log GLOB, log GDP, log DCPS, log Bank and log Stock.
See this image and copyright information in PMC

References

    1. Godil D.I., Sharif A., Ali M.I., Ozturk I., Usman R., 2021. The role of financial development, R&D expenditure, globalization and institutional quality in energy consumption in India: New evidence from the QARDL approach. J. Environ. Manage. 285, 112208. 10.1016/j.jenvman.2021.112208 - DOI - PubMed
    1. Kevser M., Tekbaş M., Doğan M., Koyluoglu S., 2022. Nexus among biomass energy consumption, economic growth, and financial development: Evidence from selected 15 countries. Energy Reports 8, 8372–8380. 10.1016/j.egyr.2022.06.033 - DOI
    1. Mahalik M.K., Babu M.S., Loganathan N., Shahbaz M., 2017. Does financial development intensify energy consumption in Saudi Arabia? Renew. Sustain. Energy Rev. 75, 1022–1034. 10.1016/j.rser.2016.11.081 - DOI
    1. Saud S., Chen S., Haseeb A. Imran M. (2019). The nexus between financial development, income level, and environment in Central and Eastern European Countries: a perspective on Belt and Road Initiative, Environmental Science Pollution Research. Volume 26, Issue 16, pp 16053–16075. 10.1007/s11356-019-05004-5 - DOI - PubMed
    1. Saud S., Chen S., Abdul Haseeb S., 2020. The role of financial development and globalization in the environment: Accounting ecological footprint indicators for selected one-belt-one-road initiative countries. J. Clean. Prod. 250, 119518. 10.1016/j.jclepro.2019.119518 - DOI

Publication types