Study of relationship between Electricity consumption, foreign assistance and GDP per capita using the ARDL approach: An investigation into Pakistan energy sector

Abstract

Electricity having a wide range of applications in both domestic and industrial sectors is a major source of energy generation in Pakistan. Considering its increasing significance, the current study contributes to the area of research by employing the ARDL approach to study the short-term/long-term relationship between energy consumption, foreign assistance, and GDP per capita in Pakistan. The time-series data from 1981-2015 is taken for the study. Empirical results show no significant relationship between energy consumption and foreign assistance in the short-run, a significant relationship between electricity consumption and foreign assistance in the long-run, and again no significant relationship between electricity consumption and GDP per capita both in the short-run and long-run.