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Energy Consumption and Economic Growth: A Disaggregate Approach


  • Mohsin Nawaz

    (M.Phil student: Applied Economics Research Centre, University of Karachi.)

  • Mahpaar Sadaqat

    (Research Economist: Applied Economics Research Centre, University of Karachi.)

  • Naveed Wahid Awan

    (Senior Lecturer: PAF Kiet University, Karachi.)

  • Maria Qureshi

    (M.Phil student: Applied Economics Research Centre, University of Karachi.)


This paper attempts to examine the long run as well as short run relationship between Pakistan’s real GDP and energy consumption at sectoral level. The analysis is based on the time series data from 1977 to 2010. We estimate the DOLS cointegration to check the long run relationship. The results indicate the long run relationship between energy consumption and real GDP on aggregate level as well as in industry and services sector but no evidence is found in agriculture sector. This paper also examines the direction of causality by employing Granger causality test and found bidirectional causality between variables under study and unidirectional causality runs from real GDP to energy consumption for industrial and services sectors but result is reverse for agriculture sector.

Suggested Citation

  • Mohsin Nawaz & Mahpaar Sadaqat & Naveed Wahid Awan & Maria Qureshi, 2012. "Energy Consumption and Economic Growth: A Disaggregate Approach," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(1), pages 255-261, March.
  • Handle: RePEc:asi:aeafrj:2012:p:255-261

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    References listed on IDEAS

    1. Altinay, Galip & Karagol, Erdal, 2005. "Electricity consumption and economic growth: Evidence from Turkey," Energy Economics, Elsevier, vol. 27(6), pages 849-856, November.
    2. Asafu-Adjaye, John, 2000. "The relationship between energy consumption, energy prices and economic growth: time series evidence from Asian developing countries," Energy Economics, Elsevier, vol. 22(6), pages 615-625, December.
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    Cited by:

    1. Ismail Oladimeji Soile, 2015. "Bivariate Cointegration Analysis of Energy-Economy Interactions in Iran," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 11(6), pages 125-139, December.
    2. Saleheen, Khan & Farooq Ahmed, Jam & Muhammad, Shahbaz, 2012. "Electricity Consumption and Economic Growth in Kazakhstan: Fresh Evidence from a Multivariate Framework Analysis," MPRA Paper 43460, University Library of Munich, Germany, revised 20 Dec 2012.
    3. repec:bap:journl:170401 is not listed on IDEAS
    4. Solarin, Sakiru Adebola & Shahbaz, Muhammad, 2013. "Trivariate causality between economic growth, urbanisation and electricity consumption in Angola: Cointegration and causality analysis," Energy Policy, Elsevier, vol. 60(C), pages 876-884.
    5. Rafik Jbir & Lanouar Charfeddine, 2012. "Short Term Relationships between European Electricity Markets," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(2), pages 276-281, June.


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