Energy consumption, human capital and economic growth: Cointegration and causality analysis with panel data worldwide

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Published: mar. 19, 2022
DOI: https://doi.org/10.54753/rve.v10i1.1293

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Estefanía Lara
Carrera de Economía, Universidad Nacional de Loja, Loja, Ecuador
Pablo Ponce
Carrera de Economía, Universidad Nacional de Loja, Loja, Ecuador

Abstract

The objective of this research is to evaluate the effect of human capital and electricity consumption on economic growth. We use panel data from the Barro and Lee (2016) and World Bank (2017) databases. We use the Pedroni (1999) and Westerlund (2007) cointegration test to find equilibrium and the Dumitrescu and Hurlin (2012) tests to verify the direction of causality between the series. Second, we estimate the strength of the cointegration vector for individual countries, through a DOLS model. For groups of countries we use a PDOLS model. The results found indicate the existence of a short- and long-term balance between the variables globally and by groups of countries. There is a one-way causality from energy consumption to economic growth, in all country groups except the high-income and extremely high-income countries. The human capital causality to growth only exists in low-income countries. The policy implications suggest that the state should seek and promote the implementation of new sources of energy generation, due to its strong relationship to growth.

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How to Cite
Lara, E. ., & Ponce, P. (2022). Energy consumption, human capital and economic growth: Cointegration and causality analysis with panel data worldwide. Revista Económica, 10(1), 63–76. https://doi.org/10.54753/rve.v10i1.1293
Issue
Vol. 10 No. 1 (2022): RVE Vol 10 (January - June 2022)
Section
RESEARCH ARTICLES
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