Abstract
The unemployment is threatening issue all over the world particularly in
developing countries. The study aims to quantify the effect of power supply on
unemployment in Pakistan. In addition, it examines the linkage among
manufacturing capacity utilization, interest rate, exchange rate and
unemployment. The study uses time-series data ranging from the period 1980-15
for analysis. The Augmented Dickey Fuller (ADF) test, Trend analysis,
Ordinary Least Square Regression Models and Co-integration test are applied.
The study reveals that power supply (electricity wastage rate and electricity
power consumption) have significant negative impact, whereas manufacturing
capacity utilization, interest rate and exchange rate have insignificant impact on
unemployment. One-kilo watt increase in electric power consumption would
decrease the level of unemployment about 3 percent. The co-integration model
shows presence of a long-term association among different variable used in the
study. The study focuses the detrimental issue for the manufacturing industry of
Pakistan i.e. power supply and unemployment. In addition, it recommends that
government should boost energy supply up and devise the need of developing
more efficient plans and reliability in strengthening the power sector
Safdar Husain Tahir, Iqra Anwar, Muhammad Rizwan Ullah. (2018) Can Power Supply Play Any Role for Unemployment in Pakistan? An Empirical Investigation, Abasyn Journal of Social Sciences, Volume-11, Issue-2.
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