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Electricity consumption and economic growth: evidence from Pakistan

Author

Listed:
  • Zahid Ashraf
  • Attiya Yasmin Javid
  • Muhammad Javid

Abstract

The objective of this study is to examine the long run relationship between real GDP per capita and electricity consumption for Pakistan over the period 1971 to 2010. The results reveal that there is unidirectional causality from electricity consumption to real GDP per capita. The findings of the study also show that there is long run relationship between real GDP per capita and electricity consumption. The results indicate a unidirectional causal relationship from real economic activity to electricity consumption at aggregate level indicating that economic development stimulates greater demand for electricity in the long-run.

Suggested Citation

  • Zahid Ashraf & Attiya Yasmin Javid & Muhammad Javid, 2013. "Electricity consumption and economic growth: evidence from Pakistan," Economics and Business Letters, Oviedo University Press, vol. 2(1), pages 21-32.
  • Handle: RePEc:ove:journl:aid:9396
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    File URL: http://www.unioviedo.es/reunido/index.php/EBL/article/view/9396
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Adnan Rashid, 2015. "Contribution of Financial Development in Electricity-Growth Nexus in Pakistan," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 11(2), pages 224-241, April.
    2. Abbas, Malaika, 2016. "The Direct and Indirect Costs of Power Outages to Small Scale Manufacturing Industries of Punjab," MPRA Paper 81264, University Library of Munich, Germany.
    3. repec:eee:rensus:v:80:y:2017:i:c:p:531-537 is not listed on IDEAS
    4. Furrukh Bashir, Ismat Nasim, Ammar Ismail, 2016. "Electricity Generation and Its Impact on Real GDP and Real Exports of Pakistan: A Co-integration Analysis," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 3(1), pages 52-67, March.
    5. Mohammed Issa Shahateet, 2014. "Modeling Economic Growth and Energy Consumption in Arab Countries: Cointegration and Causality Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 349-359.
    6. Karim Khan & Anwar Shah & Jaffar Khan, 2016. "Electricity Consumption Patterns: Comparative Evidence from Pakistan’s Public and Private Sectors," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(1), pages 99-122, Jan-June.
    7. Mudassir Zaman & Farzana Shaheen & Azad Haider & Sadia Qamar, 2015. "Examining Relationship between Electricity Consumption and its Major Determinants in Pakistan," International Journal of Energy Economics and Policy, Econjournals, vol. 5(4), pages 998-1009.
    8. Ahmed, Mumtaz & Azam, Muhammad, 2016. "Causal nexus between energy consumption and economic growth for high, middle and low income countries using frequency domain analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 653-678.
    9. Ahmed, Mumtaz & Riaz, Khalid & Maqbool Khan, Atif & Bibi, Salma, 2015. "Energy consumption–economic growth nexus for Pakistan: Taming the untamed," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 890-896.

    More about this item

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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