By applying an ARDL bounds testing approach and causality test to investigate the electricity consumption and production with economic growth

2019 ◽  
Vol 17 (2) ◽  
pp. 182-199 ◽  
Author(s):  
Abdul Rehman ◽  
Muhammad Irfan ◽  
Sehresh Hena ◽  
Abbas Ali Chandio
Keyword(s):  
Economic Growth ◽  
Electricity Consumption ◽  
Electricity Production ◽  
Bounds Testing ◽  
Causality Test ◽  
Content Type ◽  
Ardl Bounds Testing ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
Ardl Bounds Testing Approach

Purpose The purpose of this paper is to explore and investigate the electricity consumption and production and its linkage to economic growth in Pakistan. Design/methodology/approach The authors used an augmented Dickey–Fuller unit root test to check the stationarity of the variables, while an autoregressive distributed lag (ARDL) bounds testing approach and causality test were applied to investigate the variables long-term association with the economic growth. Findings The study results show that electricity consumption in the agriculture, commercial and industrial sector has significant association with economic growth, while electricity consumption in the household and street lights demonstrate a non-significant association with the economic growth. Furthermore, results also exposed that electricity production from coal, hydroelectric, natural gas, nuclear and oil sources have significant association with the economic growth of Pakistan. Originality/value This study made a contribution to the literature regarding electricity consumption and production with economic growth in Pakistan by using an ARDL bounds testing approach and causality test. This study provides a guideline to the government of Pakistan that possible steps are needed to improve the electricity production and supply to fulfill the country demand.

Do fisheries and aquaculture production have dominant roles within the economic growth of Pakistan? A long-run and short-run investigation

2019 ◽  
Vol 121 (8) ◽  
pp. 1926-1935
Author(s):  
Abdul Rehman ◽  
Zhang Deyuan ◽  
Sehresh Hena ◽  
Abbas Ali Chandio
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Government Expenditure ◽  
Series Data ◽  
Bounds Testing ◽  
Content Type ◽  
Ardl Bounds Testing ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
Ardl Bounds Testing Approach

Purpose The purpose of this paper is to investigate and explore the connection between aquaculture and capture fisheries production and economic growth in Pakistan. Fisheries play an important role in Pakistan’s national economy, and Pakistan has sufficient fishery resources to be developed. Most of the population in the coastal areas depends on fisheries for their livelihood. Design/methodology/approach This research was based on time series data of aquaculture and capture fisheries production and the analysis of their relationship with economic growth in Pakistan. The study used an autoregressive distributed lag (ARDL) bounds testing approach to check the dynamic causality between the study variables. Findings The results showed that aquaculture and capture fisheries production have had a positive effect on the economic growth in Pakistan. Practical implications Better infrastructure for the fishing industry, increased government expenditure on facilities and financial support for the fish farmers could contribute to economic growth in the future. Recommendations for improvements in these areas have been made. Originality/value By using an ARDL bounds testing approach, this study contributes to the literature regarding fisheries production and economic growth in Pakistan.

Energy consumption and agricultural economic growth in Pakistan: is there a nexus?

2019 ◽  
Vol 13 (3) ◽  
pp. 597-609 ◽  
Author(s):  
Abbas Ali Chandio ◽  
Yuansheng Jiang ◽  
Abdul Rehman
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Agricultural Economic ◽  
Bounds Testing ◽  
Content Type ◽  
Long Run ◽  
Ardl Bounds Testing ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
Ardl Bounds Testing Approach

Purpose This study aims to empirically examine the relationship between energy consumption and agricultural economic growth in Pakistan over the period from 1984 to 2016. Design/methodology/approach This study used the autoregressive distributed lag (ARDL) bounds testing approach to cointegration to investigate the long-run and short-run determinants of agricultural economic growth in Pakistan. Findings The results of the ARDL bounds testing approach to cointegration revealed that long-run linkage exists among the study variables. The findings of this paper showed that agricultural economic growth is positively affected by gas consumption and electricity consumption both in the long-run and short run. The long-run and short-run coefficients of gas consumption and electricity consumption were estimated to be 0.906, 0.421, 0.595 and 0.276, respectively. The estimated equation remains stable during the period from 1984 to 2016 as analyzed by the stability tests. Originality/value This study considers the relationship between energy consumption and agricultural economic growth in Pakistan by using an ARDL bounds testing approach to cointegration. The study has three contributions to economic literature:this study used different unit root tests to test stationarity of the variables such as ADF unit root test by Dicky and Fuller and P-P unit root test by Philip and Perron; the ARDL bounds testing approach to cointegration is applied to test the existence of long-run analysis between energy consumption and agricultural economic growth; and to check the robustness, the authors used the Johansen cointegration test to examine the long-run relationship between dependent and independent variables.

The nexus of electricity access, population growth, economic growth in Pakistan and projection through 2040

2019 ◽  
Vol 13 (3) ◽  
pp. 747-763 ◽  
Author(s):  
Abdul Rehman
Keyword(s):  
Economic Growth ◽  
Population Growth ◽  
Urban Population ◽  
Bounds Testing ◽  
Content Type ◽  
Ardl Bounds Testing ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
Electricity Access ◽  
Ardl Bounds Testing Approach

Purpose The purpose of this study was to investigate the relationship between electricity access, population growth and economic growth in Pakistan. Design/methodology/approach Phillips–Perron unit root test was applied to check the stationarity of the variables and an Autoregressive Distributed Lag (ARDL) bounds testing approach to co-integration was used to investigate the causality link between the study variables. Finally, a projection method was applied to check the future trend of the variables. Findings The study results show the long-term connections among the variables; further, the results illustrate that the electricity access to the urban population and the urban population growth has a significant impact on the economic growth, while the electricity access to the rural population and the rural population growth has a negative impact on the economic growth in Pakistan. Research limitations/implications The electricity sector needs further attention from the Government of Pakistan to boost the production from different energy sources, such as oil, gas, solar, nuclear and hydropower to be able to fulfill the country’s growing demand. Originality/value By using the ARDL bounds testing approach to co-integration, this study addressed the literature gap regarding electricity access, population growth and economic growth in Pakistan.

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