This study investigates the influence of electricity consumption and transport infrastructure on the economic growth of Pakistan by using Johansen co-integration test. This study uses secondary time series data from 1971 to 2015 and construct an index of transport infrastructure with the help of principle component analysis. The result shows that there is a long run association among electricity consumption, transport infrastructure and economic growth of Pakistan. This result is very important for the government of Pakistan to make policies regarding energy and transportation; and its implication for the development of country.
Aslan, A. (2014). Electricity consumption, labor force and GDP in Turkey: evidence from
multivariate Granger causality. Energy Sources, Part B: Economics, Planning, and Policy,
9(2), 174-182.
Abbas, F., & Choudhury, N. (2013). Electricity consumption-economic growth Nexus: an
aggregated and disaggregated causality analysis in India and Pakistan. Journal of Policy Modeling, 35(4), 538-553.
Bougheas, S., Demetriades, P. O., & Morgenroth, E. L. (1999). Infrastructure, transport costs and
trade. Journal of International Economics, 47(1), 169-189.
Belaid, F., & Abderrahmani, F. (2013). Electricity consumption and economic growth in Algeria:
A multivariate causality analysis in the presence of structural change. Energy Policy, 55, 286-295.
Chandran, V. G. R., Sharma, S., & Madhavan, K. (2010). Electricity consumption–growth nexus:
the case of Malaysia. Energy Policy, 38(1), 606-612.
Fedderke, J., & Garlick, R. (2008). Infrastructure development and economic growth in South
Africa: A review of the accumulated evidence. Policy Paper, (12).
Lean, H. H., & Smyth, R. (2014). Electricity Consumption, Output, and Trade in Bhutan.
Li, X., & Liu, X. (2005). Foreign direct investment and economic growth: an increasingly
endogenous relationship. World development, 33(3), 393-407.
Omri, A., & Kahouli, B. (2014). Causal relationships between energy consumption, foreign direct
investment and economic growth: Fresh evidence from dynamic simultaneous-equations
models. Energy Policy, 67, 913-922.
Oladipo, S. O., & Olomola, P. A. (2015). A Multivariate Causal Relationship among Road
Transport Infrastructure Development, Economic Growth and Poverty Level in Nigeria.
International Journal of Economics and Financial Research, 1(4), 57-64.
Pradhan, R. P. (2010). Transport infrastructure, energy consumption and economic growth triangle
in India: co-integration and causality analysis. Journal of Sustainable Development, 3(2), 167.
Phiri, A., & Bothwell, N. (2015). Re-visting the electricity-growth nexus in South Africa.
Pradhan, R. P., & Bagchi, T. P. (2013). Effect of transportation infrastructure on economic growth
in India: the VECM approach. Research in Transportation Economics, 38(1), 139-148.
Shahbaz, M., Zeshan, M., & Afza, T. (2012). Is energy consumption effective to spur economic
growth in Pakistan? New evidence from bounds test to level relationships and Granger
causality tests. Economic Modelling, 29(6), 2310-2319.
Song, L., & van Geenhuizen, M. (2014). Port infrastructure investment and regional economic
growth in China: Panel evidence in port regions and provinces. Transport Policy, 36, 173-183.
Sahoo, P. (2006). FDI in South Asia: trends, policy, impact and determinants, Asian
Development Bank Institute discussion paper series, no. 56. Asian Development Bank Institute, Tokyo.
Zou, W., Zhang, F., Zhuang, Z., & Song, H. (2008). Transport Infrastructure, Growth Alleviation:
Empirical Analysis of China. Annals of economics and finance, 2.
Zahra, A., Razzaq, S., & Nazir, A. (2016). Impact of Electricity Consumption and Transport Infrastructure on the Economic Growth of Pakistan. International Journal of Academic Research in Business and Social Sciences, 6(10), 264-273.
Copyright: © 2016 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
