Understanding Energy Poverty Through the Perspective of Trade Openness and Foreign Direct Investment: An Empirical Case for Selected Latin American Countries

Energy poverty (EP) is still one of the critical problems for many countries. For this purpose, we try to assess whether trade openness (TO) and foreign direct investment (FDI) are associated with EP for the panel sample of Belize, Bolivia, Honduras, Mexico, Nicaragua, Panama, and Peru, spanning the period 1992-2020. The panel vector autoregression (PVAR) estimation results indicate that economic growth, TO, and FDI inflow reduce EP by increasing access to electricity in these countries. Further, PVAR Granger causality findings show feedback causality linkage between EP and TO, EP and FDI inflow, economic growth and TO, and economic growth and FDI inflow. Moreover, the outcomes indicate that a bidirectional causality exists from economic growth to EP and from TO to FDI inflow.

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Publication Details

Journal
International Journal of Contemporary Economics and Administrative Sciences - International Journal of Contemporary Economics and Administrative Sciences
Published
2025-06-30
DOI
https://doi.org/10.5281/zenodo.16452460
Primary Topic
Sepsis Diagnosis and Treatment
Type
article
Field-Weighted Citation Impact
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article

Understanding Energy Poverty Through the Perspective of Trade Openness and Foreign Direct Investment: An Empirical Case for Selected Latin American Countries

International Journal of Contemporary Economics and Administrative Sciences - International Journal of Contemporary Economics and Administrative Sciences
Sepsis Diagnosis and Treatment
article

Understanding Energy Poverty Through the Perspective of Trade Openness and Foreign Direct Investment: An Empirical Case for Selected Latin American Countries

article en

Abstract

Energy poverty (EP) is still one of the critical problems for many countries. For this purpose, we try to assess whether trade openness (TO) and foreign direct investment (FDI) are associated with EP for the panel sample of Belize, Bolivia, Honduras, Mexico, Nicaragua, Panama, and Peru, spanning the period 1992-2020. The panel vector autoregression (PVAR) estimation results indicate that economic growth, TO, and FDI inflow reduce EP by increasing access to electricity in these countries. Further, PVAR Granger causality findings show feedback causality linkage between EP and TO, EP and FDI inflow, economic growth and TO, and economic growth and FDI inflow. Moreover, the outcomes indicate that a bidirectional causality exists from economic growth to EP and from TO to FDI inflow.

International Journal of Contemporary Economics and Administrative Sciences - International Journal of Contemporary Economics and Administrative Sciences
Erzincan Binali Yıldırım University (TR), Cukurova University (TR)
No poverty
Openalex Percentile: Top 43%
Sepsis Diagnosis and Treatment
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