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Disaggregate Energy Consumption, Agricultural Output and Economic Growth in Pakistan

Author

Listed:
  • Muhammad Zahir Faridi

    (Bahauddin Zakariya University, Multan, Pakistan)

  • Ghulam Murtaza

    (Bahauddin Zakariya University, Multan, Pakistan)

Abstract

The basic goal of the study is to analyse the impact of energy consumption (i.e., electricity, oil and gas) on economic growth and agriculture sector output in Pakistan. It is desirable to find out relationship between disaggregate energy consumption, economic growth and agricultural sector output of Pakistan because energy crisis has become a central issue now-a-days. Production sector of Pakistan relies on electricity and gas consumption to large extent and these sources of energy are falling short because of many reasons which is disrupting output and consequently exports and real output of the country. To analyse the relationship, we employed time series data from 1972 to 2011. In order to find out long run and short run effects of energy consumption on agricultural output and economic growth, ARDL modelling approach to cointegration is applied after scrutinising the stationarity of data through ADF Test. Where, bound testing procedure is utilised for cointegration to judge the existence of long run relationship among variables and ECM models are formulated for short run analysis. Our econometric models include agricultural output and economic growth as dependant variables and electricity, coal and gas consumption as independent and core variables. The findings of the study indicate that gas and oil consumption are important determinants of economic growth and agricultural output.

Suggested Citation

  • Muhammad Zahir Faridi & Ghulam Murtaza, 2013. "Disaggregate Energy Consumption, Agricultural Output and Economic Growth in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 52(4), pages 493-516.
    • Handle: RePEc:pid:journl:v:52:y:2013:i:4:p:493-516
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    References listed on IDEAS

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    Cited by:

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    2. Tiwari, Aviral Kumar & Eapen, Leena Mary & Nair, Sthanu R, 2021. "Electricity consumption and economic growth at the state and sectoral level in India: Evidence using heterogeneous panel data methods," Energy Economics, Elsevier, vol. 94(C).
    3. Hasanov, Fakhri J. & Shannak, Sa'd, 2020. "Electricity incentives for agriculture in Saudi Arabia. Is that relevant to remove them?," Energy Policy, Elsevier, vol. 144(C).
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    5. Roubaud, David & Shahbaz, Muhammad, 2018. "Financial Development, Economic Growth, and Electricity Demand: A Sector Analysis of an Emerging Economy," MPRA Paper 87212, University Library of Munich, Germany, revised 06 Jun 2018.
    6. Ogali, Oscar I.O. & Okoro, Emeka E. & Olafuyi, Saburi G., 2023. "Assessing consensus on nexus between natural gas consumption and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 187(C).
    7. Uchechukwu E. Okorie & Evans S. Osabuohien & Hassan E. Oaikhenan, 2020. "Electricity Consumption, Public Agricultural Expenditure and Output in Nigeria: A Time Series Dynamic Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 113-123.
    8. Fakhri J. Hasanov & Elchin Suleymanov & Heyran Aliyeva & Hezi Eynalov & Sa'd Shannak, 2022. "What Drives the Agricultural Growth in Azerbaijan? Insights from Autometrics with Super Saturation," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 70(3), pages 147-174.
    9. Mishelle Doorasamy & Bruce Rhodes, 2017. "South African Sucrose Quality in Sugar: Determinants and its Empirical Implications," Journal of Economics and Behavioral Studies, AMH International, vol. 9(5), pages 106-121.
    10. Ghulam Murtaza & Muhammad Zahir Faridi, 2015. "Causality Linkages among Energy Poverty, Income Inequality, Income Poverty and Growth: A System Dynamic Modelling Approach," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 407-425.

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