Energy conservation policies, growth and trade performance

What is it about?

This study investigates the energy–growth–trade nexus in Pakistan by using the annual time series data for the period of 1973–2013. Our main results show: (i) the presence of long-run link between energy consumption and trade performance; (ii) positive impact of gross domestic product, exports, and imports on energy consumption; (iii) bidirectional causal relationship between exports and energy consumption.

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Why is it important?

We therefore note that energy conservation policies will reduce the trade performance which in turn leads to decline in economic growth in Pakistan. The present study may guide policymakers in formulating a conclusive energy and trade policies for sustainable growth for long span of time.