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Does energy use cause economic growth in Latin America?

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  • Roberto Past�n
  • Rodrigo Saens
  • Roberto Contreras Mar�n

Abstract

This study analyses the relationship between energy consumption and economic growth, using annual panel data from 16 Latin American countries over the period 1971-2001. We use a random coefficient (RC) method to control for both finite sample and sample-heterogeneity biases. Our results show (1) a long-run relationship between real GDP, energy consumption, labour force and real capital stock and (2) a long-run unidirectional causality running from energy to economic growth. These results support the energy-driven growth hypothesis.

Suggested Citation

  • Roberto Past�n & Rodrigo Saens & Roberto Contreras Mar�n, 2015. "Does energy use cause economic growth in Latin America?," Applied Economics Letters, Taylor & Francis Journals, vol. 22(17), pages 1399-1403, November.
  • Handle: RePEc:taf:apeclt:v:22:y:2015:i:17:p:1399-1403
    DOI: 10.1080/13504851.2015.1034834
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    Cited by:

    1. Ronny Correa-Quezada & José Álvarez-García & María De la Cruz Del Río-Rama & Claudia Patricia Maldonado-Erazo, 2018. "Role of Creative Industries as a Regional Growth Factor," Sustainability, MDPI, Open Access Journal, vol. 10(5), pages 1-14, May.
    2. Trespalacios, Alfredo & Cortés, Lina M. & Perote, Javier, 2020. "Uncertainty in electricity markets from a semi-nonparametric approach," Energy Policy, Elsevier, vol. 137(C).
    3. Pinzón, Kathia, 2018. "Dynamics between energy consumption and economic growth in Ecuador: A granger causality analysis," Economic Analysis and Policy, Elsevier, vol. 57(C), pages 88-101.

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