Energy Consumption and Economic Growth: Time Series Evidence from Pakistan

Abstract

This study is an attempt to signify the role of energy consumption in the economic growth of Pakistan. For this purpose 33 years data for the period 1981 to 2013 has taken to determine the long run relation between energy consumption and economic growth level in Pakistan. By applying ARDL approach it has confirmed that energy consumption plays vital role in the enhancement of economic growth level as all independent variable has positive and significant impact over dependent variable that confirms that energy is a key factor to increase the economic growth level in Pakistan.

Keywords: Energy consumption, Economic Growth, ARDL