Master of Business Administration Executive
Faculty / School
Faculty of Business Administration (FBA)
Year of Award
MBA Executive Research Project
Industrial gases business comprises of manufacturing and transportation of gases such as oxygen, nitrogen, argon, carbon dioxide, hydrogen etc to industrial customers. The respective products have played a key role in major sectors of the country such as oil and gas, refinery, fertilizer, textile, steel, ship breaking and health care. The idea behind this study was to develop this sector as a yardstick for measuring growth in economic activity. Due to this contribution it was decided to carry out econometric study of industrial gases business and formulate a relationship between Pakistan's GDP and independent variables such as gas production, capital investment and labor of manufacturing sector.
By utilizing secondary data based on grounded theory approach econometric analysis was done using EVIEWS software. It started by conducting bound test for hypothesis testing which resulted in rejection of null hypothesis Ho that there is no long term correlation. Then unit root test was conducted in order to check stationary variables. Finally Auto regressive distributed lag method of co integration technique was used in order to analyze whether there is any relationship between these variables in long run. The outcome of the co integration run was an empirical relation between independent and dependent variable of which the results indicates that every 1% increase in GDP requires an increase of industrial gases production by 0.31%. Similarly 0.11% increase in capital in manufacturing sector will be required for 1% increase in GDP whereas 0.84 % increase in labor quantity in manufacturing sector will be required for 1% increase in GDP.
Primary data in this study comprised of survey and interviews. The results of the primary data were used to reinforce the secondary data analysis. A questionnaire was forwarded to industrial gases customers belonging to different sectors. Interviews of prominent industrial gases business expert and economist were conducted in order to obtain insight of the business and its impact on Pakistan’s economy. The main issue which the industrial gases business is facing since past few years is lack of uninterrupted supply of electricity with consistent frequency. Optimum output of air separation units in particular cannot be achieved if power supply is not stable. Also in tlhe light of other problems identified in the interview, certain recommendations were made in the end in order to improve industrial gases business.
Ali,, M. H. (2016). Role of industrial gases business in economic development of Pakistan : (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-emba/162
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