scholarly journals A Historical and Econometric Analysis of Energy Consumption and Industrial Output in Pakistan (1990-2019)

2021 ◽  
Vol 2 (2) ◽  
pp. 353-382
Author(s):  
Muhammad Umair ◽  
Muhammad Ramzan Sheikh ◽  
Kashif Saeed            
Keyword(s):  
Energy Consumption ◽  
Time Series Data ◽  
Trade Openness ◽  
Electricity Consumption ◽  
Series Data ◽  
Industrial Output ◽  
Oil Consumption ◽  
Industrial Growth ◽  
Long Run ◽  
Gas Consumption

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.

scholarly journals Cointegration and Causality Analysis of Dynamic Linkage between Industrial Energy Consumption and Economic Growth in Pakistan

2019 ◽  
Vol 11 (17) ◽  
pp. 4546 ◽  
Author(s):  
Chandio ◽  
Rauf ◽  
Jiang ◽  
Ozturk ◽  
Ahmad
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Electricity Consumption ◽  
Industrial Sector ◽  
Oil Consumption ◽  
Industrial Oil ◽  
Long Run ◽  
Industrial Energy ◽  
Short Run ◽  
Gas Consumption

Energy consumption is a crucial factor to promote industrial sector contribution in an economy for its economic progression. Indeed, Pakistan is an emerging country, but recently adjoining with a very severe deficit of electricity sources. Hence, the industry value added growth leading to economic progression is also fronting inevitable challenges to promote the industry growth. The main objective of the study is to investigate the linkages between industrial sector oil, gas and electricity consumption, and renewable energy consumption with economic development in Pakistan. The findings display evidence of cointegration and a long-run relationship between the consumption of industrial energy and economic growth in Pakistan. The results showed that industrial electricity consumption and industrial gas consumption have a positive and statistically significant impact on economic growth both in the long run and the short run in Pakistan. Industrial oil consumption negatively impacts economic growth in the long run, but positively and statistically significantly impacts economic growth in the short run in Pakistan. Moreover, indications through the vector error correction model (VECM) model confirmed bi-directional relationships of industrial sector oil consumption and economic growth in Pakistan. Furthermore, the uni-directional nexus instituted between economic growth to industrial electricity consumption, industrial gas consumption to industrial electricity consumption, and industrial oil consumption to industrial electricity consumption. The findings uncovered solid interconnections among the studied variables and suggested that the Pakistani government should build a robust policy to diminish the oil, gas, and fossil fuels consumption for electricity production, as a replacement to depend on solar, hydro, wind, and biomass energy sources in Pakistan. Consequently, the government should promote more gas concentrated projects, as these will alleviate the contests of gas dearth and provide it to the industry at cheap prices with ease.

Does trade openness affects global carbon dioxide emissions

2020 ◽  
Vol 31 (1) ◽  
pp. 32-53 ◽  
Author(s):  
Mohd Arshad Ansari ◽  
Salman Haider ◽  
N.A. Khan
Keyword(s):  
Carbon Dioxide ◽  
Saudi Arabia ◽  
Energy Consumption ◽  
Time Series Data ◽  
Structural Break ◽  
Trade Openness ◽  
Series Data ◽  
Content Type ◽  
Long Run ◽  
The Usa

Purpose The purpose of this paper is to analyze the effect of economic growth, international trade and energy consumption on the global carbon dioxide (CO2) emissions, in the case of top CO2 emitters, namely, USA, Japan, Canada, Iran, Saudi Arabia, UK, Australia, Italy, France and Spain using the annual data from 1971 to 2013. Design/methodology/approach For this purpose, the time series, data technique is applied. Unit root test with structural break and the bounds testing approach for cointegration in the presence of structural break is tested. Finally, a vector error correction model for the Granger causality test is applied to detect the direction of causality. The authors have used the techniques that will help in examining the structural break in the time series data. Findings The results reveal that their exists a long-run relationship between CO2 emissions and its determinants in the USA, Canada, Iran, Saudi Arabia, the UK, Australia, Italy, France and Spain, energy consumption is the main determinant of carbon dioxide (CO2) emissions in the long run and for direction of causality, the authors found bidirectional causality in the long run between energy consumption and CO2 emissions in the USA, Canada, Iran, Saudi Arabia and the UK, and Granger causality running in opposite direction in the case of Australia from CO2 emissions to energy consumption was analyzed. In terms of growth-trade-pollution nexus (USA, Canada, Iran and France) hold one-way causality running from economic growth and trade openness to CO2 emissions (IV) the environmental Kuznets curve hypothesis is validated only for the USA. Robust policy implications can be derived from this study. First, without harming the economy, these countries can reduce the use of energy consumption for lower pollution. Second, the amount of trade should be decreased to lower the emissions because the authors find that an increase in trade does Granger cause to CO2 emissions in the long run. Originality/value There has been no study that investigated the relationship between CO2 emissions, real income, consumption of energy and international trade in the environmental Kuznets relation for the top CO2 emitter’s countries over the period of 1971–2013. The authors did a comparative study of the empirical finding among these nations.

Trade Openness, Institutions and Industrial Growth in Pakistan: An Application of Bayer and Hanck Cointegration Test

2019 ◽  
Vol 12 (1) ◽  
Author(s):  
Abdul Farooq ◽  
A.R. Chaudhary ◽  
Ahmad Nawaz
Keyword(s):  
Time Series Data ◽  
Trade Openness ◽  
Industrial Sector ◽  
Series Data ◽  
Geographical Differences ◽  
Industrial Growth ◽  
Long Run ◽  
Quality Of Institutions ◽  
Short Run

Per Capita Income and productivity of industrial sector are very low in developing nations including Pakistan as compared to developed nations. Three reasons have been mentioned in the literature for this difference; geographical differences, role of international trade and the quality of institutions.This study examines the short run and long run impacts of trade openness, and quality of institutions, on the growth of industrial sector of Pakistan, using time series data over the period of 1984-2013.TheCobb- Douglas production function has been augmented by adding quality of institutions, trade openness, and financial development variables to probe their impacts on the industrial growth. The most recently developed combined cointegration technique by Bayer and Hanck (2013) has been usedto check the cointegration among the variables. Long run empirical results show that trade openness, and quality of institutions positively contributes to the growth of industrial sector. These resultssuggest that better quality and well-functioning of the institutions is a pre requisites to boost the foreign trade, and the growth of industrial sector of Pakistan. Keywords: Trade Openness, Institutions, Industrial Growth, Pakistan

scholarly journals FAKTOR – FAKTOR YANG MEMPENGARUHI KONSUMSI GAS DI INDONESIA

2021 ◽  
Vol 3 (2) ◽  
pp. 69
Author(s):  
Rohim Rohim ◽  
Mike Triani
Keyword(s):  
Time Series ◽  
World Bank ◽  
Time Series Data ◽  
Secondary Data ◽  
Series Data ◽  
Industrial Growth ◽  
A Value ◽  
The World Bank ◽  
The World ◽  
Gas Consumption

The purpose of this research is to determine (1) the effect of income on gas consumption in Indonesia (2) the effect of population on gas consumption in Indonesia (3) the effect of industrial growth on gas consumption in Indonesia. This type of research is descriptive and associative. The data used in this research is secondary data from Indonesia in the form of time series data from 1970 to 2019 and this data was obtained from official institutions of the World Bank and BP Statistic World. The data were processed using multiple linear regression. The results showed that the income had a negative and significant effect on gas consumption with a probability value of 0.0005 <0.05, the population had a positive and significant effect on gas consumption with a value of prob t-count of 0.0010 <0.05 and industrial growth had a positive and significant effect on gas consumption.  The significant to gas consumption in Indonesia with a value of prob t-count value of 0.5219 <0.05 and suggestions for further researchers to be able to analyze other factors that affecting gas consumption in Indonesia.  Because from the gas sectors, there are still many factors that affected gas consumption until the research results will be better

scholarly journals Consequences of Capital formation, Trade Liberalization on the Economic Growth: Pakistan’s Experience

2015 ◽  
Vol 2 (1) ◽  
pp. 1-4
Author(s):  
Nadia Bukhari ◽  
Anjum Iqbal
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Trade Openness ◽  
Capital Formation ◽  
Vital Role ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Auto Regressive ◽  
Adf Test

This study considers the long run relationship between the liberalization of trade, capital formation and the economic growth of Pakistan by using the time series data from 1975-2013. The main aim of this study is to examine that how much liberalization of trade and capital formation affects the economic growth of Pakistan in long run. The approach that has been used for empirical analysis is Auto Regressive Distributed Lag (ARDL) model. Under the ADF test capital formation (CF) is stationary at its first level but the trade openness (TO) and GDP is stationary at its first difference. Moreover, the granger casualty test is evident that there become a casual relationship between the trade openness and GDP. The result of this study shows that both the trade openness and the capital formation determined the economic growth in long run and they both have statistically significant effect on the GDP. Furthermore it has has been depicted from the study that the trade has a vital role to influence the economic growth.

A Sectoral Analysis of the Role of Stock Market Development on Economic Growth: Empirical Evidence from Indian Economy

2017 ◽  
Vol 18 (4) ◽  
pp. 911-923 ◽  
Author(s):  
Madhu Sehrawat ◽  
A.K. Giri
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Time Series Data ◽  
Trade Openness ◽  
Series Data ◽  
Causality Test ◽  
Long Run ◽  
Short Run

The present study examines the relationship between Indian stock market and economic growth from a sectoral perspective using quarterly time-series data from 2003:Q4 to 2014:Q4. The results of the autoregressive distributed lag (ARDL) approach bounds test confirm the existence of a cointegrating relationship between sector-specific gross domestic product (GDP) and sector-specific stock indices. The empirical results reveal that sector-specific economic growth are significantly influenced by changes in the respective sector-specific stock price indices in the long run as well as in the short run. Apart from that, the control variables, such as trade openness and inflation, act as the instrument variables in explaining the variations in the sector-specific GDP of the economy. The results of Granger causality test demonstrate unidirectional long-run as well as short-run causality running from sector specific stock prices to respective sector GDP. The findings suggest that economic growth of the country is sensitive to respective sub-sector stock market investments. The findings highlight the reasons for cyclical and counter-cyclical business phase for the overall economy.

Modelling the Nexus Between Foreign Aid and Economic Growth: A Case of Afghanistan and Egypt

2021 ◽  
Vol 39 (2) ◽  
Author(s):  
Muhammed Ashiq Villanthenkodath ◽  
Ubaid Mushtaq
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Time Series Data ◽  
Trade Openness ◽  
Political Stability ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
Annual Time Series ◽  
And Control

This paper tries to explore the existence of a long-run relationship between foreign aid and economic growth by using the data from the two highest foreign aid recipient countries. Using the annual time series data from 1965 to 2017 this study uses several econometric models such as Johansen and Juselius cointegration, Granger causality and vector auto regression to establish the long and short-run relationships among foreign aid inflows and economic growth while also considering financial development and trade openness from both the countries. The empirical results suggest that no long-run relationship exists among foreign aid inflows and economic growth for both the countries. However, unidirectional causality running from foreign aid to economic growth is indicative in both countries. Therefore, the findings in this paper support the adequate need for foreign aid for effective economic growth amid an upright policy environment, related issues of conditionality and political stability. Our results are robust to independent, and control variables and estimation techniques are also on par with robustness.

Investigating the Causal Linkage Among Economic Growth, Energy Consumption and CO2 Emissions in Thailand: An Application of the Wavelet Coherence Approach

2020 ◽  
Vol 10 (1) ◽  
pp. 17-26 ◽  
Author(s):  
Tomiwa Sunday Adebayo ◽  
Gbenga Daniel Akinsola
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Time Series Data ◽  
Wavelet Coherence ◽  
Series Data ◽  
Energy Usage ◽  
Positive Correlation ◽  
Long Run ◽  
Growth Energy

The study aims to explore the causal linkage between CO2 emissions, economic growth and energy consumption in Thailand utilizing the wavelet coherence approach, conventional Granger and the Toda-Yamamoto causality techniques. In this study, In this study, time-series data spanning the period between 1971 and 2018 were used. No prior study has used the wavelet coherence approach to collect information on the association and causal interrelationship among these economic variables at different frequencies and timeframes in Thailand. The study objectives are structured to answer the following question: Does economic growth and energy consumption lead to CO2 emissions in Thailand?. The findings revealed that: (a) Changes in economic growth led to changes in CO2 emissions in Thailand at different frequencies (different scales) between 1971 and 2018. (b) A bidirectional causal relationship between CO2 emissions and energy consumption. (c) A positive correlation between CO2 emissions and energy usage in the short and long-run between 1971 and 2018. (d) A positive correlation between GDP growth and CO2 emissions in the short and long-run between 1971 and 2018. The study suggested that Thailand should initiate stronger policies towards enhancing the efficiency of energy and energy-usage programs to minimize unnecessary energy waste.

scholarly journals Sectoral Investment and Employment Generation in Pakistan: An Econometric Analysis

2018 ◽  
Vol 4 (2) ◽  
pp. 261-270
Author(s):  
Furrukh Bashir ◽  
Hafeez ur Rehman ◽  
Rashid Ahmad ◽  
Ismat Nasim
Keyword(s):  
Time Series Data ◽  
Trade Openness ◽  
Percent Level ◽  
Series Data ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Augmented Dickey Fuller ◽  
Lag Model ◽  
Employment Generation

This study is projected at investigating the influence of Sectoral Investment on Employment Generation. For this purpose, time series data is collected from Pakistan over the period from 1972 to 2017. Augmented Dickey fuller test reveals that few variables considered in the study are stationary at level and few at first difference. So, econometric results are estimated using autoregressive and distributed lag model for long run elasticities. Long run co-integrating relationship is established at 2.5 percent level using ARDL bound testing approach. ARDL long run results concludes that Agricultural Investment, Industrial Investment, Services Sector Investment and Trade openness are increasing employment while inflation and tax revenue are seemed to be negatively related with employment of Pakistan in the long run.

scholarly journals Determinants of Private Investment in Pakistan

2020 ◽  
Vol 2 (3) ◽  
pp. 86-92
Author(s):  
Muhammad Suleman ◽  
Abdur Rehman ◽  
Haroon Javaid
Keyword(s):  
Growth Rate ◽  
Public Sector ◽  
Time Series Data ◽  
Trade Openness ◽  
Private Investment ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Domestic Savings ◽  
Short Run

Private investment has a significant relation with the economic growth of the country. It plays an important role in reduction of unemployment and poverty by promoting efficiency and competition among the firms. This study is an attempt to investigate the determinants of private investment in Pakistan. For this purpose, time-series data is utilized for the period 1974-2013. The ARDL (Auto Regressive-Distributed Lag) modeling technique of co-integration was employed to estimate the short-run and long-run determinants of private investment in Pakistan. Empirical findings of this study indicated that in the short-run private investment in Pakistan is determined by the growth rate of GDP, public sector investment, and domestic savings. While in the long run it is determined by the official exchange rate, the growth rate of GDP, public sector investment, domestic savings, trade openness, and interest rate. The results also revealed that in the case of Pakistan different political regimes (democratic, non-democratic) have no significance in the determination of private investment. Stability tests of CUSUM and (CUSUMSQ) (Cumulative Sum Control Chart) were performed in this study. These tests indicated a stable, long run as well as short-run structural stability of the model.

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