The Electricity Consumption and Economic Growth Nexus in Pakistan: A New Evidence
AbstractThis study examines the Granger causality between electricity consumption and Gross Domestic Product (GDP) for Pakistan using annual data covering the period 1971 to 2007. Augmented Dickey-Fuller test and Phillips-Perron test reveal that both the series, after logarithmic transformation, are non-stationary and individually integrated at order one. Engle and Granger Cointegration test exhibits the absence of long-run relationship among the variables. Two tests of causality, standard Granger Causality test and Modified WALD test (T-Y test) affirm the existence of unidirectional Granger causality from electricity consumption to economic growth without any feedback effect. Therefore, an immediate effort to increase electricity availability is required and energy conservation policies are supposed to halt the economic growth.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 41377.
Date of creation: 10 Feb 2010
Date of revision:
Electricity Consumption; Economic Growth; Pakistan;
Other versions of this item:
- Atif, Syed Muhammad & Siddiqi, Muhammad Wasif, 2010. "The Electricity Consumption and Economic Growth Nexus in Pakistan: A New Evidence," EconStor Preprints 65688, ZBW - German National Library of Economics.
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- O20 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - General
- Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
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