Energy and Industrial Sector in Developing Countries: A Comparative Study

Abstract

The importance of Energy for Industrial Development cannot be ignored especially for developing countries. Considering this fact, this study is conducted to see the effectiveness of Energy for Industrial Sector Output of Developing Countries. The results of Panel ARDL reveal that Broad Money, GDP Deflator, Capital Formation and Labor force seemed to be increasing Industrial Sector Output in the longrun in High, Middle and LDCs (Low Income Developing Countries) while Government Expenditure and Energy Consumption are reducing Industrial Sector Output in HDC) (High Income) and LDCs (Low Income Developing Countries). Price Level is cause of higher Industrial Sector Output in HDCs (High Income) and LDCs (Low Income Developing Countries) while it is negative factor for MDCs (Middle Income Countries) in the long run. Moreover, energy consumption has been found a cause of Higher Industrial Sector Output (IND) in MDCs (Middle Income Countries) in long run.