Investigating nonparametric causality and asymmetric co-integration between energy consumption, financial development and economic growth in Iran

Today,the role and importance of energy consumption in the process of economic development and the role of financial markets in economic growth has been proven by guiding financial flows from unproductive to productive sectors.Due to the complexity of economic systems in different countries of the world,this relationship may be asymmetric.Given that economic growth in Iran has fluctuated greatly,the study of the asymmetric relationship between energy consumption and financial development as two factors affecting sustainable development and economic growth can be the path of Iran's economy to growth.And sustainable development will help a lot.The present study examines the asymmetric and nonlinear relationship between energy consumption,financial development and economic growth with emphasis on capital and labor for the Iranian economy during the period1978to2016.To investigate asymmetric correlation between variables,a NARDL self-regression approach has been used.To investigate the causal relationship between the variables under study,Nonlinear Grager Causality Test Diks & Panchenko nonparametric approach is Used.The results show that there is also asymmetric accumulation between variables, especially economic growth and energy consumption. The results of nonlinear causality show that there is a one-sided causality of economic growth to energy consumption, capital and labor, so implement conservative energy consumption policies, efficient and efficient use of energy in manufacturing sectors, direct capital to productive sectors. And having an export advantage, providing more facilities to the private sector and providing training tailored to the needs of the Iranian labor market, plays a major role in placing the Iranian economy on the path of sustainable growth and development.