Impact Of Electricity Infrastructure on Trade Openness: A Case Study of Pakistan

Abstract

The aim of this study is to analyse the impact of Electricity Infrastructure on Trade Openness in Pakistan over the period of 1991-2024. The estimation technique used for this purpose is Auto Regressive Distributive Lag (ARDL). A proxy is used for the measurement of infrastructure such as electricity consumption, along with other determinants of trade openness. Infrastructure variables, population growth, and financial development are found to be positively associated to trade openness. Thus validates the hypothesis that is; electricity infrastructure facilitates trade openness in Pakistan. Real effective exchange rate has a negative impact on trade openness in Pakistan. In the light of results, it is suggested that, government should build more dams and power generation units in order to enhance more electricity generation to boost trade.

Keywords:

Trade openness, Electricity Infrastructure, ARDL, Financial development