Electricity Consumption and Economic Growth in Pakistan: An Empirical Analysis

Abstract

The purpose of this research is to investigate the influence of electricity usage on economic growth in Pakistan from 1980 to 2008. The autoregressive distributed lag co-integration test was employed. The findings of the co-integration boundaries test reveal the long-run co-integration relationship between economic growth, electricity consumption, and trade. Furthermore, empirical data show that electricity consumption and commerce have a beneficial long-run and short-run influence on economic growth. According to the research, Pakistan should make significant investments in the power industry. In terms of energy supply, the government should assure an increase in domestic energy supplies. Because there is a shortage of energy, society should be educated on the efficient and effective use of resources.