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Granger causality between exports, economic growth and electricity production: empirical evidence for Latin America

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  • Javier Alejandro Vera Vargas

    (Universidad Técnica Federico Santa María)

  • Werner Kristjanpoller Rodríguez

    (Universidad Técnica Federico Santa María)

Abstract

This paper examines the causal short-run and long-run relationship between economic growth, export composition and electricity production using panel cointegration techniques for 14 Latin American countries in the period 1971-2010. The analysis is performed considering first aggregate exports, and then breaking down into 12 industrial sectors to finally take account of the intensive use of technology. The results indicate that long-term economic growth depends on non-technology exports and that policies adversely affecting electricity production do not impact GDP in the short term, but they do in the long run.

Suggested Citation

  • Javier Alejandro Vera Vargas & Werner Kristjanpoller Rodríguez, 2017. "Granger causality between exports, economic growth and electricity production: empirical evidence for Latin America," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 86, pages 25-62, Enero - J.
    • Handle: RePEc:lde:journl:y:2017:i:86:p:25-62
    DOI: 10.17533/udea.le.n86a02
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    More about this item

    Keywords

    economic growth; export composition; electricity production; panel data cointegration; Latin America.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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