Does energy use cause economic growth in Latin America?

Roberto Past�n, Rodrigo Saens () and Roberto Contreras Mar�n
Authors registered in the RePEc Author Service: Roberto Carlos Contreras Marin and Roberto Pasten

Applied Economics Letters, 2015, vol. 22, issue 17, 1399-1403

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.

Date: 2015
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DOI: 10.1080/13504851.2015.1034834

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