Master of Science in Economics

Faculty / School

Faculty of Business Administration (FBA)


Department of Economics

Date of Submission



Dr. Mohammad Nishat, Institute of Business Administration, Karachi

Project Type

MSECO Research Project

Access Type

Restricted Access


The purpose of this report is to study long term relationship between economic development and energy use in Pakistan. It is known that economic development is directly proportional to energy use so we intend to examine the relationship between energy use and economic growth. For this purpose we use the annual panel data, retrieved from World Bank’s World Development Indicator Report, of different countries categorized by their income. We used Random Coefficient Regression using Generalized Least Square methods to find a positive impact of energy use on economic development, Engle and Granger approach for long term relationship and Granger approach for direction of causality.

Pakistan has long term relation between energy and economic growth with direction of causality from energy to economic growth so investment in energy will expedite the economic growth.


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