Economic Implications of Domestic Consumption in Pakistan: A Quantitative Assessment

The purpose of the study was to study the impact of domestic consumption (electricity consumption, food, and natural gas) on the Economic Growth of Pakistan. Time series data is used for analysis from to 2014 taken from the World Governance Indicators Index. Pakistan's GDP is used as a dependent variable and household consumption includes consumption of electricity, food, and natural gas used as independent Department of Economics, variables. Multiple regression analysis is used to determine the relationship Shanghai University, Shanghai, between different variables. The OLS method is used in study analysis. After China checking stationary and applying the OLS technique, we found that there is a negative correlation between electricity consumption and economic growth. The results of the study revealed that the different consumption patterns of consumers negatively impact the economic growth of the country so the study suggests that there should be power-saving techniques that only can improve the natural resources and conserve resources. The study also found that the impact of independent variable has a positive impact on economic growth and insignificant results of food consumption show that households may spend less on food consumption when their disposable income is less and they increase their consumption whenever income increases which affect the economy mostly. As collected data shows that the consumption patterns change every year and upsurge, so the economic production grows and impacts positively. The third independent variable is natural gas consumption that is also shown a positive and significant impact on the economy of Pakistan