Preprint

The Electricity Consumption and Economic Growth Nexus in Pakistan: A New Evidence

This 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.

Language
Englisch

Classification
Wirtschaft
Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
Development Planning and Policy: General
Energy and the Macroeconomy
Subject
Economic Growth
Electricity Consumption
Toda-Yamamoto
Pakistan
Economic Growth
Electricity transmission

Event
Geistige Schöpfung
(who)
Atif, Syed Muhammad
Siddiqi, Muhammad Wasif
Event
Veröffentlichung
(who)
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
(where)
Kiel und Hamburg
(when)
2010-02-12

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Preprint

Associated

  • Atif, Syed Muhammad
  • Siddiqi, Muhammad Wasif
  • ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft

Time of origin

  • 2010-02-12

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