Aim: The impact of trade openness on the economic development of countries is a subject that needs to be investigated. The aim of this study is to investigate the relationship between openness, total energy consumption, renewable energy consumption, government expenditure, and economic growth in Iran between 1980-2023.Method: In this study, short and long term coefficients were estimated using the ARDL bounds test. Additionally, the cointegration relationship between the variables was analyzed using the Hacker and Hatemi-J (2006) cointegration test.Results: Empirical findings show that trade openness has a positive contribution to economic growth in the short and long term. Moreover, total energy consumption increases economic growth. However, the effect of renewable energy on economic growth is statistically insignificant. Additionally, government expenditure positively affects economic growth, which is supported by the Keynesian perspective. According to the bootstrap causality analysis results, there is a two-way causality relationship between trade openness and economic growth. In addition, government expenditure is the causal of economic growth.Conclusion: As a result of the findings, it is recommended to increase trade openness in Iran and to produce policies that will bring new international agreements and trade associations.
Tuncer Govdeli (Tue,) studied this question.
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