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On the Relationship between Foreign Direct Investment and Energy Consumption: The Mexican Case

Author

Listed:
  • Al Aali-Bujari

    (Universidad Aut noma de Estado de Hidalgo, Escuela Superior de Apan. M xico,)

  • Francisco Venegas-Mart nez

    (Instituto Polit cnico Nacional, Escuela Superior de Econom a, M xico)

Abstract

This paper is aimed at analyzing the interrelation between Foreign Direct Investment (FDI) and energy consumption (EC) in Mexico during the period 1970-2014. To do that, we carry out a cointegration test and a Granger causality analysis. The empirical results from the cointegration test show a stable link between the growth rates of FDI and EC in the long run. While the results from Granger s causality show that in the short run there is a unidirectional Granger causality from the growth rate of FDI toward the growth rate EC, while in the medium and long there is a bidirectional causality between the growth rates of FDI and EC in Mexico during the period under study.

Suggested Citation

  • Al Aali-Bujari & Francisco Venegas-Mart nez, 2021. "On the Relationship between Foreign Direct Investment and Energy Consumption: The Mexican Case," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 231-235.
    • Handle: RePEc:eco:journ2:2021-03-28
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    Citations

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    Cited by:

    1. Zhen Liu & Renjie Cai & Ruotong Li & Jing Lan, 2023. "The effects of agricultural product exports on agricultural environmental pollution: evidence from OECD countries and China," Economic Change and Restructuring, Springer, vol. 56(6), pages 4071-4098, December.
    2. Ali Çelik, 2023. "Testing Linear and Nonlinear Relationships Between Foreign Direct Investment and Fossil Energy Consumption in Fragile Five Countries," EKOIST Journal of Econometrics and Statistics, Istanbul University, Faculty of Economics, vol. 0(38), pages 1-77, June.
    3. Sarfraz, Muddassar & Iqbal, Kashif & Wang, Yichu & Bhutta, Muhammad Shoaib & Jaffri, Zain ul Abidin, 2023. "Role of agricultural resource sector in environmental emissions and its explicit relationship with sustainable development: Evidence from agri-food system in China," Resources Policy, Elsevier, vol. 80(C).
    4. Anggi Putri Kurniadi & Hasdi Aimon & Syamsul Amar, 2021. "Determinants of Biofuels Production and Consumption, Green Economic Growth and Environmental Degradation in 6 Asia Pacific Countries: A Simultaneous Panel Model Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 460-471.

    More about this item

    Keywords

    s foreign direct investment; energy consumption; cointegration; Granger causality;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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