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Is energy consumption effective to spur economic growth in Pakistan? New evidence from bounds test to level relationships and Granger causality tests

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  • Shahbaz, Muhammad
  • Zeshan, Muhammad
  • Afza, Talat

Abstract

The present study investigates the relationship between energy (renewable and nonrenewable) consumption and economic growth using Cobb–Douglas production function in case of Pakistan over the period of 1972–2011. We have used the ARDL bounds testing and Gregory and Hansen (1990) structural break cointegration approaches for long run while stationarity properties of the variables have been tested applying Clemente-Montanes-Reyes (1998) structural break unit root test.

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Bibliographic Info

Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 29 (2012)
Issue (Month): 6 ()
Pages: 2310-2319

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Handle: RePEc:eee:ecmode:v:29:y:2012:i:6:p:2310-2319

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Web page: http://www.elsevier.com/locate/inca/30411

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Keywords: Energy consumption; Economic growth; Pakistan;

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