Analyzing the Influence of Electricity Generation on Employment in Pakistan: An Empirical Evidence

Abstract

The objective of this study is to present the influence of Electricity Generation on Employment. The current research uses annual time series data ranging from 1972 to 2014. Unit root test is used to examine stationarity of variable. Long run results are revealed using Johansen Cointegration test and it finalizes that Energy Generation, Employed Labor Force, Real GDP, Exports, Foreign Direct Investment and Exchange Rate are positively associated with Employment in Pakistan. Error correction term results confirm convergence towards long run equilibrium by doing approximately 2 percent annual adjustments if any disturbance occurs in the short run.

Keywords: Electricity Generation, Employed Labor Force, exchange rate, exports, Real Gross Domestic Product, Foreign Direct Investment.

JEL Classification Codes: C32, E24, F16, Q4.