This study examines the relationship between energy consumption (EC), gross domestic product (GDP), foreign direct investment (FDI), human development index (HDI) and remittances (RMTs) for Colombia, Ecuador and Mexico using annual data for the period 1980 to 2012. Time series techniques especially Granger causality test and impulse-response functions, are operated to test the causal relationships direction and its interaction sign. In Colombia, there are two unidirectional causalities running from HDI to EC and GDP to FDI generating a positive effect, and a bidirectional causality between HDI and RMTs reflecting an enhancing feedback in the long-term. In Ecuador, the presence of a unidirectional direct causality from EC to GDP and a negative impact from RMTs to GDP characterize for the long-term interaction. In Mexico, EC causes FDI in the short-term within a positive interaction, and FDI and HDI sustain short-term unidirectional causalities affecting RMTs positively exerted from FDI and negatively from HDI. After reviewing the results and the most successful experience in the region, the author suggests specific policies and programs to each country such as Venezuelan social programs, Costa Rican FDI policies, and Brazilian energy policies, among others.
