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The Nexus Between Energy Consumption and Economic Growth: the Case of México

Author

Listed:
  • JacobPegou, Sibe.

    (Universidad de Dschang, Camerún)

  • Cesaire, Chiatchoua.

    (Tecnológico de Estudios Superiores de Chimalhuacán, Estado de México)

Abstract

This study examines the relationship between energy consumption and economic growth in Mexico within a multivariate framework in order to determine the degree to which energy consumption influences economic growth prospects in Mexico. Throughout this study, we look at the relationship between different forms of energies and economy growth. We used the granger causality test, which enabled us to verify the direction of causality between the variables of interest; the Breusch-Godfrey Serial Correlation LM test, to test for serial correlation of the stochastic variable and the ADF to test for stationary of the model. The results showed that there is a bidirectional relationship between economic growth and energy consumption in Mexico. Looking at all the sectors of usage of energy, we found that electricity produced from coal, nuclear and hydroelectric sources impact positively on economic growth, whereas electricity produced from natural gas and oil highly negatively impact on economic growth./ Este estudio examina la relación entre el consumo de energía y el crecimiento económico en la economía de México, con el fin de determinar el grado de influencia del consumo de energía en las perspectivas de crecimiento de esta economía. Se utilizó la prueba de causalidad de Granger para verificar la dirección de la causalidad entre las variables de interés; la prueba La Grange Multipliers (LM) de correlación de serie de Breusch-Godfrey para probar la correlación de serie de la variable estocástica y el ADF para probar la estacionalidad del modelo. Los resultados muestran una relación bidireccional entre el crecimiento económico y el consumo de energía en México. En cuanto a los sectores de la utilización de la energía, se encontró que la electricidad producida a partir del carbón, de la energía nuclear y de la hidroeléctrica impactan positivamente en el crecimiento económico, mientras que la electricidad generada a partir del gas natural y petróleo impactan negativamente.

Suggested Citation

  • JacobPegou, Sibe. & Cesaire, Chiatchoua., 2015. "The Nexus Between Energy Consumption and Economic Growth: the Case of México," Panorama Económico, Escuela Superior de Economía, Instituto Politécnico Nacional, vol. 0(20), pages 129-156, primer se.
    • Handle: RePEc:ipn:panora:v:x:y:2015:i:20:p:129-156
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Mexico; energy consumption; growth; granger-causality; Breusch- Godfrey serial correlation LM Test./ México; consumo energético; crecimiento económico; causalidad de Granger; prueba LM de correlación de serie de Breusch-Godfrey.;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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