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Electricity Generation and Its Impact on Real GDP and Real Exports of Pakistan: A Co-integration Analysis

Furrukh Bashir, Ismat Nasim, Ammar Ismail
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Furrukh Bashir, Ismat Nasim, Ammar Ismail: Iqra University Karachi, Pakistan

Journal of Management Sciences, 2016, vol. 3, issue 1, 52-67

Abstract: The objective of the study is to present the influence of Electricity Generation on Real GDP and Real Exports of Pakistan using time series data from 1972 to 2014. The results of Johansen Co-integration test revealed that Electricity Generation, Employed Labour Force, Gross Fixed Capital Formation and Terms of Trade have a positive influence on while Exchange Rate is having negative relationship with Real GDP. In other model, Electricity Generation, Employed La- bor Force, Gross Fixed Capital Formation, Relative Prices are evidence of increasing real Exports. On the other side, Exchange Rate is negatively associated with real Exports of Pakistan.

Keywords: Electricity generation; exchange rate; terms of trade; real GDP; real exports; relative price; Solow growth model. (search for similar items in EconPapers)
Date: 2016
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