LAPSE:2020.0739
Published Article
LAPSE:2020.0739
Linear and Nonlinear Causality between Energy Consumption and Economic Growth: The Case of Mexico 1965⁻2014
Mario Gómez, Aitor Ciarreta, Ainhoa Zarraga
June 23, 2020
This paper analyzes the causal link between aggregated and disaggregated levels of energy consumption and economic growth in Mexico between 1965 and 2014, with the presence of structural breaks stemming from the series. To that end, unit root with structural breaks, cointegration, and linear and nonlinear causality tests are employed. The results show that there is a long-run relationship between production, capital, labor, and energy, and linear causal links from total and disaggregated energy consumption to economic growth. A nonlinear causality also exists from energy consumption, the transport sector, capital, and labor to output. These results support the growth hypothesis, which maintains that energy is an important input factor for economic activity and that energy conservation policies impact the economic growth in Mexico.
Keywords
causality, economic growth, energy consumption, Mexico, structural breaks
Suggested Citation
Gómez M, Ciarreta A, Zarraga A. Linear and Nonlinear Causality between Energy Consumption and Economic Growth: The Case of Mexico 1965⁻2014. (2020). LAPSE:2020.0739
Author Affiliations
Gómez M: Instituto de Investigaciones Económicas y Empresariales (Economic and Business Research Institute), Universidad Michoacana de San Nicolás de Hidalgo, Edificio ININEE, Ciudad University, C.P. 58030, Morelia, Mich., Mexico
Ciarreta A: Department of Economic Analysis II, University of the Basque Country (UPV/EHU), Avda. Lehendakari Aguirre, 83, 48015 Bilbao, Spain
Zarraga A: Department of Applied Economics III (Econometrics and Statistics), University of the Basque Country (UPV/EHU), Avda. Lehendakari Aguirre, 83, 48015 Bilbao, Spain [ORCID]
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Journal Name
Energies
Volume
11
Issue
4
Article Number
E784
Year
2018
Publication Date
2018-03-29
Published Version
ISSN
1996-1073
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Original Submission
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PII: en11040784, Publication Type: Journal Article
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LAPSE:2020.0739
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doi:10.3390/en11040784
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Jun 23, 2020
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CC BY 4.0
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Original Submitter
Calvin Tsay
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