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

Al Aali-Bujari and Francisco Venegas-Mart Nez
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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
Authors registered in the RePEc Author Service: Francisco Venegas-Martínez

International Journal of Energy Economics and Policy, 2021, vol. 11, issue 3, 231-235

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.

Keywords: s foreign direct investment; energy consumption; cointegration; Granger causality (search for similar items in EconPapers)
JEL-codes: C32 F21 Q43 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2021-03-28

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