Long-term relationship between energy consumption and GDP in Latin America: an empirical assessment using panel data

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Carlos Alberto Barreto Nieto
Jacobo Campo Robledo https://orcid.org/0000-0003-3057-6206

Keywords

Energy Consumption, Economic Growth, Production Function, Panel.

Abstract

The main objetive of this research is to evaluate the long term relationship between energy consumption and GDP for some Latin American countries in the period 1980-2009. The estimation has been done through the non-stationary panel approach, using the production function in order to control other sources of GDP variation, such as capital and labor. In addition to this, a panel unit root tests are used in order to identify the non-stationarity of these variables, followed by the application of panel cointegration test proposed by Pedroni (2004) to avoid a spurious regression (Entorf, 1997; Kao, 1999).

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