Energy Consumption and Agriculture Sector in Middle Income Developing Countries: A Panel Data Analysis

Pakistan Journal of Social Sciences (PJSS), Vol. 35, No. 1 (2015), pp. 479-496

18 Pages Posted: 21 Mar 2022

See all articles by Hafeez Rehman

Hafeez Rehman

University of the Punjab (PU) - Department of Economics

Dr. Furrukh Bashir

Bahauddin Zakariya University, Multan; University of the Punjab (PU) - Department of Economics; The Islamia University of Bahawalpur, Pakistan

Date Written: June 30, 2015

Abstract

The importance of energy consumption in agriculture sector may never be ignored in developing countries. Keeping in view, the present study is aimed at analyzing the influence of energy consumption on agriculture sector of middle income developing countries. Following Solow growth model, the study considers panel data of middle income developing countries for the period from 1990 to 2014. All variables are estimated in US dollars calculated at year 2005 prices and log – log form of the equation is utilized for examining elasticity of agriculture sector with respect to energy consumption. Using Levin, Lin and Chu – unit root test, it is observed that variables are having mixed order of integration I (0) and I (1). In this situation, Panel ARDL technique is thought to be the most appropriate for econometric analysis. Panel ARDL Long run results exhibit that real agriculture sector output is enhanced due to energy consumption, GDP deflator, real government expenditure and real broad money while total labor force and real gross fixed capital formation is having inverse influence on real agriculture sector output in the long run. It is suggested that energy conservation policies should not be adopted by the middle income developing countries for acceleration of agriculture sector.

Keywords: Energy consumption, Agriculture Sector, Solow growth model, GDP Deflator, Government Expenditure, Broad Money, Panel ARDL

Suggested Citation

Rehman, Hafeez and Bashir, Furrukh, Energy Consumption and Agriculture Sector in Middle Income Developing Countries: A Panel Data Analysis (June 30, 2015). Pakistan Journal of Social Sciences (PJSS), Vol. 35, No. 1 (2015), pp. 479-496, Available at SSRN: https://ssrn.com/abstract=4015662

Hafeez Rehman

University of the Punjab (PU) - Department of Economics ( email )

Lahore
Pakistan

Furrukh Bashir (Contact Author)

Bahauddin Zakariya University, Multan ( email )

School of Economics
Multan, Punjab 60800
Pakistan
+923336181588 (Phone)

University of the Punjab (PU) - Department of Economics ( email )

Lahore
Pakistan

The Islamia University of Bahawalpur, Pakistan ( email )

Bahawalpur
Bahawalpur
Bahawalpur, PA Punjab 63100
Pakistan

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