Energy and economic growth in Peru: A long-term perspective through cointegration
DOI:
https://doi.org/10.21754/iecos.v24i1.1871Keywords:
Economic growth, cointegration, unit root, energy, electricity consumptionAbstract
Thinking about the economic growth of a nation is thinking about a series of alternatives. This research article examines the relationship between energy consumption and economic growth in Peru using cointegration models to present development alternatives. The main objective is to analyze the influence of energy consumption on long-term economic growth. To achieve this, a methodology is used that begins with the Unit Root tests and data is collected between 2005 and 2018. The results obtained reveal a significant positive relationship between energy consumption and economic growth in the long term, which indicates that an increase in energy consumption has a positive impact on economic growth. These findings reveal the importance of considering additional and structural factors that influence long-term economic growth. In conclusion, this study contributes to the understanding of the dynamics between energy consumption and economic growth, providing relevant information for policy makers and decision makers in the search for sustainable development.
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References
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Zhang, C., & Lin, J. (2012). Energy consumption, carbon emissions, and economic growth in China. Ecological Economics, 68(10), 2706-2712. https://doi.org/10.1016/j.ecolecon.2009.05.011
Banerjee, A., Dolado, J. J., Galbraith, J. W., & Hendry, D. F. (1993). Co-integration, error correction, and the econometric analysis of non-stationary data. Oxford University Press. https://doi.org/10.1093/0198288107.001.0001
Bayramoglu, A. T. & Yildirim, E. (2017). The Relationship between Energy Consumption and Economic Growth in the USA: A Non-Linear ARDL Bounds Test Approach. Energy and Power Engineering, 9(3), 170-186.
https://doi.org/10.4236/epe.2017.93013
Chang, T., Chu, H. P., & Chen, W. Y. (2013). Energy consumption and economic growth in 12 Asian countries: panel data analysis. Applied Economics Letters, 20(3), 282-287, https://doi.org/10.1080/13504851.2012.692869
Chen, P.-Y., Chen, S.-T., & Chen, C.-C. (2012). Energy consumption and economic growth—New evidence from meta analysis. Energy Policy, 44, 245-255. https://doi.org/10.1016/j.enpol.2012.01.048
Dickey, D. A., & Fuller, W. A. (1979). Distribution of the estimators for autoregressive time series with a unit root. Journal of the American statistical Association, 74(366), 427-431. https://doi.org/10.2307/2286348
Engle, R. F., & Granger, C. W. (1987). Co-integration and error correction: Representation, estimation, and testing. Econometrica: Journal of the Econometric Society, 55(2), 251-276. https://doi.org/10.2307/1913236
Frankel, J. & Romer, D. (1999). Does trade cause growth?. American Economic Review, 89(3), 379-399. https://doi.org/10.1257/aer.89.3.379
Granger, C. W. (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica: Journal of the Econometric Society, 37(3), 424-438. https://doi.org/10.2307/1912791
Johansen, S. (1988). Statistical analysis of cointegration vectors. Journal of economic dynamics and control, 12(2-3), 231-254. https://doi.org/10.1016/0165-1889(88)90041-3
Kaldor, N. (1961). Capital accumulation and economic growth. En F. A. Lutz y D. C. Hague (Eds.), The Theory of Capital (pp. 177-222). Macmillan. https://doi.org/10.1007/978-1-349-08452-4_10
Kose, M. A., Prasad, E. S., & Terrones, M. E. (2003). Financial integration and macroeconomic volatility. IMF Staff Papers, 50(1), 119-142. https://www.imf.org/en/Publications/WP/Issues/2016/12/30/Financial-Integration-and-Macroeconomic-Volatility-16322
Lee, C. C. (2013). The causal relationship between energy consumption and GDP in G-11 countries revisited. Energy Policy, 34(9), 1086-1093. https://doi.org/10.1016/j.enpol.2005.04.023
Lucas, R. E. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22(1), 3-42. https://doi.org/10.1016/0304-3932(88)90168-7
Mauro, P. (1995). Corruption and growth. The Quarterly Journal of Economics, 110(3), 681-712. https://doi.org/10.2307/2946696
Narayan, P. K., & Narayan, S. (2010). Carbon dioxide emissions and economic growth: Panel data evidence from developing countries. Energy Policy, 38(1), 661-666. https://doi.org/10.1016/j.enpol.2009.09.005
Phillips, P. C., & Ouliaris, S. (1990). Asymptotic properties of residual based tests for cointegration. Econometrica: Journal of the Econometric Society, 58(1), 165-193. https://doi.org/10.2307/2938339
Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5), S71-S102. https://www.jstor.org/stable/2937632
Saikkonen, P. (1992). Estimation and testing of cointegrated systems by an autoregressive approximation. Econometric Theory, 8(1), 1-27. https://www.jstor.org/stable/3532143
Saqib, N. (2021). Energy consumption and economic growth: Empirical evidence from MENA region. International Journal of Energy Economics and Policy, 11(6), 191-197. https://doi.org/10.32479/ijeep.11931
Shahbaz, M., & Lean, H. H. (2012). Does financial development increase energy consumption? The role of industrialization and urbanization in Tunisia. Energy Policy, 40, 473-479. https://doi.org/10.1016/j.enpol.2011.10.050
Solow, R. M. (1956). A contribution to the theory of economic growth. The Quarterly Journal of Economics, 70(1), 65-94. https://doi.org/10.2307/1884513
Topolewski, Ł. (2021). Relationship between Energy Consumption and Economic Growth in European Countries: Evidence from Dynamic Panel Data Analysis. Energies, 14(12), 3565. https://doi.org/10.3390/en14123565
Zhang, C., & Lin, J. (2012). Energy consumption, carbon emissions, and economic growth in China. Ecological Economics, 68(10), 2706-2712. https://doi.org/10.1016/j.ecolecon.2009.05.011
Published
2023-08-11
How to Cite
Caparó, R. (2023). Energy and economic growth in Peru: A long-term perspective through cointegration. Revista IECOS, 24(1), 31–44. https://doi.org/10.21754/iecos.v24i1.1871
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