(Munich Personal RePEc Archive, 2014) Muhammad Shahid Hassan; Saqlain Latif Satti; Haider Mahmood; Muhammad Shahbaz
This study is an attempt to revisit the causal relationship between coal consumption and
economic growth in case of Pakistan. The present study covers the period of 1974-2010. The
direction of causality between the variable is investigated by applying the VECM Granger
causality approach. Our findings have exposed that there exists bidirectional Granger causality
between economic growth and coal consumption. The Cumulative Sum (CUSUM) and
Cumulative Sum of Square (CUSUMSQ) diagrams have not found any structural instability over
the period of 1974-2010.