Foreign Direct Investment in the Power and Energy Sector, Energy Consumption, and Economic Growth: Empirical Evidence from Pakistan

Latief, Rashid; Lefen, Lin

doi:10.3390/su11010192

Cited by 39 publications

(28 citation statements)

References 54 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…As per our empirical results, the estimated coefficient of CFDI is small (0.0034) and affects the agriculture sector of Pakistan positively; the reason behind the small coefficient is that the agriculture sector is receiving less FDI as compared to other sectors, because the chunk of CFDI was invested in energy, power, and infrastructure development projects. In the context of Pakistan, Latief [63] also confirmed that the energy and power sectors have comparatively received a higher amount of FDI than other sectors. Pakistan's government is taking some influential measures to attract more FDI in the agricultural sector, which ultimately boosts up the technological innovations in the sector and consequently improves the growth of the agriculture sector.…”

Section: Long-run Analysismentioning

confidence: 88%

Does Chinese FDI, Climate Change, and CO2 Emissions Stimulate Agricultural Productivity? An Empirical Evidence from Pakistan

et al. 2020

View full text Add to dashboard Cite

Pakistan’s agricultural sector growth is dwindling from the last several years due to insufficient foreign direct investment (FDI) and a drastic climate change-induced raise in temperature, which are severely affecting agricultural production. The FDI has paramount importance for the economy of developing countries as well as the improvement of agricultural production. Based on the time series data from 1984 to 2017, this paper aims to highlight the present situation of the agriculture sector of Pakistan and empirically analyze the short-run and long-run impact of Chinese foreign direct investment (CFDI), climate change, and CO2 emissions on agricultural productivity and causality among the variables. The Autoregressive Distributed Lag Model (ARDL) model and Granger Causality test were employed to find out the long-run, short-run, and causal relationships among the variables of interest. Furthermore, we have employed the Error Correction Model (ECM) to know the convergence of the equilibrium path. The bound test results verified the existence of a long-run association, and the empirical findings confirmed that Chinese FDI has a significant and positive impact, while climate change and CO2 emissions has negative impact on the agricultural growth of Pakistan both in the short-run and long-run. Granger Causality test results revealed that variables of interest exhibit bi-directional and uni-directional causality. The sector-wise flow of FDI reveals that the agriculture sector of Pakistan has comparatively received a less amount of FDI than other sectors of the economy. Based on the findings, it was suggested to the Government of Pakistan and policymakers to induce more FDI in the agriculture sector. Such policies would be helpful for the progress of the agriculture sector as well as for the economic growth of Pakistan.

show abstract

Section: Long-run Analysismentioning

confidence: 88%

Does Chinese FDI, Climate Change, and CO2 Emissions Stimulate Agricultural Productivity? An Empirical Evidence from Pakistan

et al. 2020

View full text Add to dashboard Cite

show abstract

“…Due to CPEC, inflow from China into the energy sector and infrastructure is already increased and more is also expected. This inflow will, in turn, spur economic growth and propensity of Pakistan economy [12]. For instance, Javid [33] claimed that CPEC has increased investment in both public and private infrastructure that is very crucial for economic growth.…”

Section: Cpec and Economic Goalsmentioning

confidence: 99%

China-Pakistan Economic Corridor and Its Influence on Perceived Economic and Social Goals: Implications for Social Policy Makers

2019

View full text Add to dashboard Cite

China-Pakistan Economic Corridor (CPEC) has initiated as a mega project by China and Pakistan to benefit economic growth and free trade. CPEC is in the initial stage, and policymakers and government officials consider CPEC as a “game-changer” for both the countries, as, potentially, it will generate numerous business and employment opportunities for local citizens as well as international outreach. Recently, a plethora of research has discussed both the macro as well as micro level advantages of CPEC, but has only been focused theoretically due to the emerging term. How beneficial the CPEC for a local community, and how it is perceived by the local people is not yet discussed by prior studies. This research fills the gap and examines the potential benefits of CPEC for local citizens of Pakistan. A mixed method approach was adopted to collect the data, as survey through structured questionnaire was conducted with a total of 445 citizens (323 male and 122 female), and a face-to-face interview with 32 citizens (28 male and four female) from the communities living along the CPEC routes. The findings show that, through the development of CPEC, local citizens perceive significant improvement in their lives, particularly the quality of life, better employment opportunities, and poverty reduction, while they have an insignificant perception about environmental protection and quality of education. This research recommends policy makers to build new educational institutions, encourage investors to invest in the industrial sector, and formulate environmental strategies to unleash maximum benefits of CPEC. Moreover, government official and policy makers may create awareness of CPEC projects and their benefits among the communities to get their support.

show abstract

“…One of the widely recognized facilitators of economic growth through FDI is energy supply, according to many sources. E.g., Latief and Lefen (2019) confirm a positive bi-directional short-run causal relationship between economic growth and energy consumption in Pakistan. The same conclusion on the Chinese dataset was obtained by Hao et al (2018), who verify the existence of bilateral causal relationship between rural GDP and rural energy consumption in the short run.…”

Section: Literature Reviewmentioning

confidence: 70%

A Model of Fuel and Energy Sector Contribution to Economic Growth

Polyakova

Ramakrishna

Kolmakov

et al. 2019

IJEEP

View full text Add to dashboard Cite

The study examined the impact of foreign direct investment (FDI) in the fuel and energy sector and related industries on economic growth in response to the debates on FDI's impact on economic growth being positive (government officials and policymakers) or negative (the World Bank, some researchers). The hypothesis that a significant relationship is present between the Russian Federation gross domestic product (GDP) and gross FDI in Fuel and Energy Sector (fuels and non-fuels fossils mining, coke and petrochemicals production, rubber and plastic production, and energy supply) is introduced and validated by using a regression model. The derived model tests changes of regression results patterns of the Russian GDP against FDI in energy-related industries in different periods 1998-2004 and 2010-2017. GDP is assessed in five different measures: current US dollars, international US dollars (purchasing power parity), growth rates of the former and the latter, and physical growth index. It was concluded that, to a greater extent, economic growth is influenced by foreign investment in energy supply and petrochemical production in the both periods. Increased investment in power generation also contributes to economic growth, while other constituents of the sector, including mining, have a statistically insignificant or even retarding effect on economic growth, thus evidencing in favor of the World Bank's criticism towards FDI. Policy implications of the findings prove the necessity to introduce structural changes intended to redirect capital flows from oil and gas to prevent from economic growth deterioration in the long-term perspective.

show abstract

Foreign Direct Investment in the Power and Energy Sector, Energy Consumption, and Economic Growth: Empirical Evidence from Pakistan

Cited by 39 publications

References 54 publications

Does Chinese FDI, Climate Change, and CO2 Emissions Stimulate Agricultural Productivity? An Empirical Evidence from Pakistan

Does Chinese FDI, Climate Change, and CO2 Emissions Stimulate Agricultural Productivity? An Empirical Evidence from Pakistan

China-Pakistan Economic Corridor and Its Influence on Perceived Economic and Social Goals: Implications for Social Policy Makers

A Model of Fuel and Energy Sector Contribution to Economic Growth

Contact Info

Product

Resources

About