How Does Electricity Affect Economic Growth? Examining the Role of Government Policy to Selected Four South Asian Countries

Electricity consumption and government policy are two vital elements for economic growth. Thus, this study explores the roles of electricity use in growth selected four South Asian countries over period from 1980 to 2014. The includes variable extended Cobb–Douglas production function driven model, which was absent earlier studies. pooled mean group-based panel autoregressive distributed lag (P-ARDL) method is used empirical investigation, while fully modified ordinary least squares (FMOLS) dynamic square (DOLS) methods checking sensitivity P-ARDL estimates. Our results reveal that effects electricity, spending, financial development capital formation have significant positive on Asia. However, exports imports found detrimental effects. Causality test reveals a unidirectional causality supports hypothesis. Following findings, important recommendations made foster countries.