Cheers to anxiety: Granger causality insights on alcohol consumption patterns across 13 South American countries

The relationship between alcohol consumption and mental health is complex; drinking may exacerbate anxiety, and in turn, anxiety can lead to excessive drinking. This study explores the relationship between alcohol consumption patterns including wine, beer, and spirits, and anxiety prevalence in selected 13 South American nations.

This study utilises secondary data spanning 29 years from 1991 to 2019 obtained from the Our World in Data database. It investigates the causal link between the prevalence of anxiety and alcohol consumption in the selected countries using the Granger causality test.

Anxiety was found to have a unidirectional effect on wine and beer consumption in Chile, Suriname, Uruguay, and Trinidad and Tobago. Additionally, drinking alcohol consumption appears to impact anxiety levels in Brazil. Argentina demonstrates a bidirectional relationship between anxiety and all three types of alcohol consumption, with similar patterns observed in Brazil (wine and beer), Chile (spirits), and Paraguay (spirits).

No significant causal relationships for alcohol consumption patterns were found in other nations. The identified Granger causal links follow four distinct directions in this study. These findings provide valuable insights for policymakers, governments, and international investors for informed decision-making regarding regulation and policy tools.