ENERGY-CONSUMPTION AND ECONOMIC-GROWTH IN BRAZIL, MEXICO AND VENEZUELA - A TIME-SERIES ANALYSIS

Applying recently developed techniques of cointegration and Hsiao's ve rsion of Granger causality to three Latin countries (Brazil, Mexico, a nd Venezuela), this study finds no causal linkages between energy cons umption and economic growth for both Mexico and Venezuela using the tr ivariate models. However, capital is found to negatively, though weakl y, cause economic growth for both Mexico and Venezuela. Additionally, energy is found to cause economic growth for Brazil. In sum, we detect no consistent causal patterns between energy and economic growth base d on the causality tests from the three Latin countries.