Effect of energy consumption and human capital on economic growth: Cointegration and causality analysis with panel data worldwide

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Published: dic. 6, 2021

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Estefanía Lara
Carrera de Economía, Universidad Nacional de Loja, Loja, Ecuador
Karen Iñiguez
Carrera de Economía, Universidad Nacional de Loja, Loja, Ecuador

Abstract

Countries opt for different measures that direct them towards efficient human capital investmentand sustainable electricity consumption, expecting a positive effect on economicgrowth levels. The research evaluates this effect at the global level. The proposed variableswere taken from the panel database of Barro and Lee (2016) andWorld Bank (2017). Theresults prove the existence of a short- and long-run equilibrium between the variablesat the global level and by country groups. The strength of the cointegrating vector is significantin low, low and extremely high middle-income countries. There is unidirectionalcausality from energy consumption to economic growth, in all country groups except forhigh and extremely high income countries. Human capital causality to growth exists onlyin low-income countries. Governments should seek and encourage the implementation ofnew sources of energy generation and strategic investment in education to ensure thedevelopment of countries.

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Lara, E. ., & Iñiguez, K. . (2021). Effect of energy consumption and human capital on economic growth: Cointegration and causality analysis with panel data worldwide. Revista Económica, 9(1), 39–54. Retrieved from https://revistas.unl.edu.ec/index.php/economica/article/view/1147
Issue
Vol. 9 No. 1 (2021): RVE Vol 9 (January - June 2021)
Section
RESEARCH ARTICLES
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