Open AccessA Historical and Econometric Analysis of Energy Consumption and Industrial Output in Pakistan (1990-2019)
Author(s) -
Muhammad Umair,
Muhammad Ramzan Sheikh,
Kashif Saeed
Publication year - 2021
Publication title -
perennial journal of history
Language(s) - English
Resource type - Journals
eISSN - 2788-693X
pISSN - 2707-6709
DOI - 10.52700/pjh.v2i2.79
Subject(s) - nexus (standard) , economics , openness to experience , electricity , granger causality , consumption (sociology) , energy consumption , econometric analysis , secondary sector of the economy , macroeconomics , econometric model , causality (physics) , econometrics , economy , engineering , psychology , social psychology , social science , physics , electrical engineering , quantum mechanics , sociology , embedded system
This paper examines the nexus of disaggregated energy consumption and industrial output in Pakistan. The annual time series data over the period 1990-2019 has been taken for current research. ARDL technique has been employed for empirical analysis. The results show that oil consumption, electricity consumption and gas consumption are positively and significantly connected with the industrial output in long run. Similarly, trade openness, labour and capital also have the same association with the industrial output and have significant outcomes in the long run. The results of Granger causality show that there exists a unidirectional causality from electricity consumption to industrial output. The study concludes that oil, gas and electricity are contributing a large share in industrial growth so that it would be made an effort to install the plants relevant with these energy sources to meet the affordable demand in the industry sector.