Impact of Electricity Consumption and Transport Infrastructure on the Economic Growth of Pakistan

Abstract

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.