Energy Consumption and Growth in South America: Evidence From a Panel Error Correction Model

This study examines the relationship between energy consumption and economic growth for a panel of nine South American countries over the period 1980–2005 within a multivariate framework. Given the relatively short span of the time series data, a panel cointegration and error correction model is emp...

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Main Authors: Apergis, Nicholas, Payne, J.
Format: Journal Article
Published: Elsevier 2010
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/33237
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author Apergis, Nicholas
Payne, J.
author_facet Apergis, Nicholas
Payne, J.
author_sort Apergis, Nicholas
building Curtin Institutional Repository
collection Online Access
description This study examines the relationship between energy consumption and economic growth for a panel of nine South American countries over the period 1980–2005 within a multivariate framework. Given the relatively short span of the time series data, a panel cointegration and error correction model is employed to infer the causal relationship. Pedroni's heterogeneous panel cointegration test reveals a long-run equilibrium relationship between real GDP, energy consumption, the labor force, and real gross fixed capital formation with the respective coefficients positive and statistically significant. The Granger-causality results indicate both short-run and long-run causality from energy consumption to economic growth which supports the growth hypothesis.
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institution Curtin University Malaysia
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publishDate 2010
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spelling curtin-20.500.11937-332372017-09-13T15:28:02Z Energy Consumption and Growth in South America: Evidence From a Panel Error Correction Model Apergis, Nicholas Payne, J. Panel unit root and cointegration tests Growth Granger-causality Energy consumption This study examines the relationship between energy consumption and economic growth for a panel of nine South American countries over the period 1980–2005 within a multivariate framework. Given the relatively short span of the time series data, a panel cointegration and error correction model is employed to infer the causal relationship. Pedroni's heterogeneous panel cointegration test reveals a long-run equilibrium relationship between real GDP, energy consumption, the labor force, and real gross fixed capital formation with the respective coefficients positive and statistically significant. The Granger-causality results indicate both short-run and long-run causality from energy consumption to economic growth which supports the growth hypothesis. 2010 Journal Article http://hdl.handle.net/20.500.11937/33237 10.1016/j.eneco.2010.04.006 Elsevier restricted
spellingShingle Panel unit root and cointegration tests
Growth
Granger-causality
Energy consumption
Apergis, Nicholas
Payne, J.
Energy Consumption and Growth in South America: Evidence From a Panel Error Correction Model
title Energy Consumption and Growth in South America: Evidence From a Panel Error Correction Model
title_full Energy Consumption and Growth in South America: Evidence From a Panel Error Correction Model
title_fullStr Energy Consumption and Growth in South America: Evidence From a Panel Error Correction Model
title_full_unstemmed Energy Consumption and Growth in South America: Evidence From a Panel Error Correction Model
title_short Energy Consumption and Growth in South America: Evidence From a Panel Error Correction Model
title_sort energy consumption and growth in south america: evidence from a panel error correction model
topic Panel unit root and cointegration tests
Growth
Granger-causality
Energy consumption
url http://hdl.handle.net/20.500.11937/33237