CHINA PAKISTAN ECONOMIC CORRIDOR (CPEC): THE COUNTER BALANCER OF MOMENTOUS ENERGY CRISIS IN PAKITAN
DOI:
https://doi.org/10.14738/assrj.57.4841Keywords:
, CPEC, Energy, GDP, Electric Power Consumption, Labor Force, Price RatioAbstract
This paper will highlight the importance of energy projects that has been covered under the CPEC. Energy is the most important and significant factor for the development and growth of the economy. CPEC is an economic Corridor which is also working as an energy Corridor for Pakistan, 30 billion dollar is invested in energy sector, which will ultimately boost up Pakistan’s shut down industry due to the energy crisis. This paper will highlight the projects of energy sector that has been started in Pakistan and how these energy projects will be beneficial for the economy of Pakistan. This paper will discuss the link between electric power consumption, labor force and price ratio with GDP of Pakistan. Data has been taken from the World Bank for the period of 1990-2016, GDP is considered as dependent variable whereas electric power consumption, labor force and price ratio have been analyzed as independent variables in the light of CPEC and its effects. Least Square Regression has been applied with the help of E-Views a statistical software. The result reveals that GDP of Pakistan is highly and positively affected by electric power consumption, labor force and price ratio. CPEC will help to improve the supply of energy including electricity, increase employment rate and generate more opportunities of employment that will enhance the GDP of Pakistan. The energy projects which includes coal, wind, hydro and solar are covered under the CPEC will help the country to come out from the energy crisis that Pakistan has been facing from the last decadeReferences
Bao-jun Tang, P.-q. G.-c. (2017). Energy consumption flow and regional economic development: Evidence from 25 economies. Journal of Modelling in Management, 12(1), 96-118.
Calabrese, J. (2014). Balancing on 'the Fulcrum of Asia': China's Pakistan Strategy. Indian Journal of Asian Affairs, 27/28, 1-20.
CPEC Official Website, http://pakchina.pk/energy-sector-projects-cpec
Hunt, L.C., & Y. Ninomiya. (2005). Primary energy demand in Japan: an empirical analysis of long term trends and future C02 emissions. Energy Policy, 33-1, 1409-1424.
Ahmed, W., zaman, k., Taj, S., Rustam, R., Waseem, M., & Sabir, M. (2013). Economic growth and energy consumption nexus in Pakistan. South Asian Journal of Global Business Research, 2(2), 251-275.
Aqeel, & Butt. (2001). The Relationship between Energy Consumption and Economic Growth in Pakistan. Asia Pacific Development Journal, 8-2, 101-110.
Calabrese, J. (2014). Balancing on 'the Fulcrum of Asia': China's Pakistan Strategy. Indian Journal of Asian Affairs, 27/28, 1-20.
Hussain A, Lal I, Mubin M (2009). Short Run and Long Run Dynamics of Macroeconomics Variables and Stock prices: Case Study of KSE (Karachi Stock Exchange), Kashmir Economic Review, 18(1 & 2), 43-61.
http://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=PK&view=chart
http://data.worldbank.org/indicator/EG.USE.PCAP.KG.OE?locations=PK
Kakar Z., & Khilji B. (2011). Energy Consumption and Economic Growth ln Pakistan. Journal of International Academic Research.
Kraft, J., & Kraft, A. (1978). On the relationship between energy and GNP. Energy Development, 3, 401403.
Latif, S., Rizvi, S. M., Mubin, M., & Iqbal, N. (2014). Financial Market Integration: Empirical Evidence from the Economic Cooperation of India and Pakistan. Journal of Economics and Sustainable Development, 5(3), 2014
Oh. W., & K.Lee. (2004). Causal Relationship between Energy Consumption and GDP Revisited: The Case Of Korea 1970-1999. Energy Economics, 51-59.
Razzaqi, S., Bilquees, F., & Sherbaz, S. (2011). Dynamic Relationship between Energy and Economic Growth: Evidence from D8 Countries. The Pakistan Development Review, No. 4, Papers and Proceedings PARTS I and II The 27th Annual, 50, 437-458.
Stern, & D.J. (2000). Multivariate cointegration analysis of the role of energy in the U.S. macroeconomy. Energy Economics, 22, 267-283.
Spokesperson China's Foreign Ministry. (April 15, 2015).
http://www.fmprc.gov.cn/mfa_eng/xwfw_665399/s2510_665401/2511_665403/t1254958.shtml
Tang, B.-j., Gong, P.-q., & Xiao, Y.-c. (2017). Energy consumption flow and regional economic development: evidence from 25 economies. Journal of Modelling in Management, 12(1), 96118.
Yu, S., & Jin, J. (1992). Cointegration Tests of energy consumption, income and employment. Resources and Energy, 14, 259-266.
Yilmiz, M.H. et al (2016). Income Inequality and Its Measures: Evidence from OECD and European Countries. Journal of Poverty, Investment and Development, 20(1), 9-25
Zubair, Muhammad and Burney, Anwar Irshad and Sarwat, Syed Salman and Mubin, Muhammad, Macroeconomics Relations between Exchange Rate Instability, Exchange Rate Volatility, Trade and Economic Growth Variables: The Case of Pakistan. Journal of Economics and Sustainable Development, Vol.5, No.13, 2014. Available at http://dx.doi.org/10.2139/ssrn.2534839
Downloads
Published
How to Cite
Issue
Section
License
Authors wishing to include figures, tables, or text passages that have already been published elsewhere are required to obtain permission from the copyright owner(s) for both the print and online format and to include evidence that such permission has been granted when submitting their papers. Any material received without such evidence will be assumed to originate from the authors.
