TY - JOUR
T1 - On the relationship between foreign direct investment and energy consumption
T2 - The Mexican case
AU - Aali-Bujari, Alí
AU - Venegas-Martínez, Francisco
N1 - Publisher Copyright:
© 2021, Econjournals. All rights reserved.
PY - 2021
Y1 - 2021
N2 - This paper is aimed at analyzing the interrelation between Foreign Direct Investment (FDI) and energy consumption (EC) in Mexico during the period 1970-2014. To do that, we carry out a cointegration test and a Granger causality analysis. The empirical results from the cointegration test show a stable link between the growth rates of FDI and EC in the long run. While the results from Granger’s causality show that in the short run there is a unidirectional Granger causality from the growth rate of FDI toward the growth rate EC, while in the medium and long there is a bidirectional causality between the growth rates of FDI and EC in Mexico during the period under study.
AB - This paper is aimed at analyzing the interrelation between Foreign Direct Investment (FDI) and energy consumption (EC) in Mexico during the period 1970-2014. To do that, we carry out a cointegration test and a Granger causality analysis. The empirical results from the cointegration test show a stable link between the growth rates of FDI and EC in the long run. While the results from Granger’s causality show that in the short run there is a unidirectional Granger causality from the growth rate of FDI toward the growth rate EC, while in the medium and long there is a bidirectional causality between the growth rates of FDI and EC in Mexico during the period under study.
KW - Cointegration
KW - Energy Consumption
KW - Foreign Direct Investment
KW - Granger Causality
UR - http://www.scopus.com/inward/record.url?scp=85105121525&partnerID=8YFLogxK
U2 - 10.32479/ijeep.10988
DO - 10.32479/ijeep.10988
M3 - Artículo
AN - SCOPUS:85105121525
SN - 2146-4553
VL - 11
SP - 231
EP - 235
JO - International Journal of Energy Economics and Policy
JF - International Journal of Energy Economics and Policy
IS - 3
ER -