Energy- GDP Nexus and the Role of Exports: An Empirical Evidence from Pakistan and South Asian Region

Abstract

The purpose of the study is to present the influence of electricity generation on Pakistan's real GDP and real exports using time series data. The results of Johansen's co integration test revealed that electricity generation, labor force employed, gross fixed capital formation and terms of trade have a positive influence while the exchange rate has a negative relationship with real GDP. In another model, electricity generation, labor force employment, gross fixed capital formation, relative prices are evidence of an increase in real exports. On the other hand, the exchange rate is negatively associated with Pakistan's real exports.