Energy Consumption and Economic Growth in Pakistan: A Sectoral Analysis

Sana Nadeem and Kashif Munir

MPRA Paper from University Library of Munich, Germany

Abstract: The study aimed at investigating the relationship between energy consumption at aggregate and disaggregate levels i.e., oil, coal, gas and electricity in different sectors (commercial, agriculture, industry, power and transport) of the economy with the economic growth in Pakistan. Annual time series data for the time period ranging from 1972 to 2014 has been used in this study. Autoregressive distributed lag bound testing approach for cointegration and to find the relationship between variables Granger causality test is applied. The results of the study showed that there exists a long run relationship between the dependent variable (economic growth) and independent variables (aggregate and disaggregate oil, coal, gas and electricity consumption in different sectors). It is also found that there exists a Neutrality Hypothesis between aggregate and disaggregate oil consumption and Conservation Hypothesis is found in aggregate and disaggregate coal, gas and electricity consumption. This study recommends that government should increase job opportunities in industrial sector where oil is used for production, shift their burden to cheap available resource from coal and transfer the units of electricity to industrial sector so that economic growth of Pakistan can be enhanced.

Keywords: Energy Consumption; Economic Growth; Disaggregate; ARDL; Pakistan (search for similar items in EconPapers)
JEL-codes: C32 O13 Q43 (search for similar items in EconPapers)
Date: 2016-09-09
New Economics Papers: this item is included in nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/74569/1/MPRA_paper_74569.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:74569

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().