The effect of stock market and banking sector developments on energy consumption in BRICS: Evidence from panel vector autoregressive analysis

Energy is an important resource in the economic development of countries. While it is used as an input in production, it also has an important usage area in consumption. For these reasons, the factors affecting energy use have been the subject of many studies. This study examines the impact of financial development (FD) on energy consumption (EC) in BRICS countries (Brazil, Russia, India, China, and South Africa). In the study, EC, FD, economic growth, foreign direct in- vestments and total trade (%GDP) variables for the period 1994–2017 were examined with the help of the PVAR (panel vector autoregressive) model. According to the findings, there is a unidirectional relationship from both EC and economic growth to the development of the banking sector.