The Impact of Globalization and Financial Development on Environment within the Context of STIRPAT Model: The Case of Turkey

p.p1 {margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Minion Pro'; min-height: 14.0px} p.p2 {margin: 0.0px 0.0px 0.0px 0.0px; text-align: justify; line-height: 10.1px; font: 10.0px 'Minion Pro'; color: #2d2829} span.s1 {font: 12.0px 'Minion Pro'; color: #000000} Today, the increasing environmental deterioration along with the increasing economic activity has led to an increase in the number of studies addressing this relationship. As a result of the increasing interactions between countries due to globalization, financial mobility has also increased across the world. Although globalization and financial mobility have effects on real variables, they also have an impact on the environment. To see figure out the effects of globalization and financial development on environment, we need to look at their relations with CO2 emissions. Therefore, this study examined the impact of globalization and financial development on environmental deterioration in Turkey, using the modified version of STIRPAT (Stochastic Impacts by Regression on Population, Affluence and Technology) model and the annual data covering the period of 1970-2013. According to the results obtained from cointegration analysis and causality tests, the variables analyzed move together in the long-run.