ARTICLE

ROLE OF INNOVATION IN THE ENERGY SECTOR FOR ENHANCING EXPORT PERFORMANCE AND ECONOMIC GROWTH

  1. HOME
  2. ARTICLE

04 Pages : 36-49

http://dx.doi.org/10.31703/ger.2023(VIII-I).04      10.31703/ger.2023(VIII-I).04      Published : Mar 2023

Role of Innovation in the Energy Sector for Enhancing Export Performance and Economic Growth

Abstract

    Innovation in the energy sector plays an important role in enhancing the export performance and economic growth of the country. In this conceptual paper, we make a difference between innovation within the industry from innovation outside the industry, and their impact on the export performance and economic growth of the country. The most essential aspects of conceptualized relationships are that innovations in the energy sector i.e. electricity sector can significantly improve the economic growth of the country and the export performance of manufacturing organizations. The energy consumption theory and neo-classical theory involves in order to explain economic growth in the prospect of innovation. It is identified that by making innovation in the energy sector, it becomes possible for the government to overcome the tariff rates of electricity, which ultimately reduces the production cost of organizations, and enhances the export performance and economic growth of the country.

    Economic Growth, Export Performance, Innovation

    (1) Zohaib Ahmad
    Senior Research Officer, Office of Research, Innovation and Commercialization, University of Management and Technology, Lahore, Punjab, Pakistan.
    (2) Sumera Arshad
    The Islamia University of Bahawalpur, Punjab, Pakistan.
    (3) Muhammad Junaid Anwer
    Lecturer, Department of Management Sciences, The Islamia University of Bahawalpur, Punjab, Pakistan.
Fulltext PDF

References

  • Abou-Stait, F. (2005). Working Paper 76-Are Exports the Engine of Economic Growth? An Application of Cointegration and Causality Analysis for Egypt, 1977-2003.
  • Abraham, V., & Sasikumar, S. (2011). Labor Cost and Export Behavior of Firms in Indian Textile And Clothing Industry. Economics, Management & Financial Markets, 6(1)
  • Ahmad, Z., & Ahmad, J. (2018). Role of Export and FDI in Economic Growth (GDP): A Case of Asian Countries.
  • Altinay, G., & Karagol, E. (2004). Structural break, unit root, and the causality between energy consumption and GDP in Turkey. Energy economics, 26(6), 985- 994. https://doi.org/10.1016/j.eneco.2004.07.001
  • Amjed, S., Shah, I. A., & Riaz, A. (2022). Investigating the interactive role of demand side factors potentially responsible for energy crisis in Pakistan. International Journal of Energy Economics and Policy, 12(3), 236-246. https://doi.org/10.32479/ijeep.12930
  • Apergis, N., & Payne, J. E. (2009). Energy consumption and economic growth: evidence from the Commonwealth of Independent States. Energy economics, 31(5), 641-647. https://doi.org/10.1016/j.eneco.2009.01.011
  • Asafu-Adjaye, J. (2000). The relationship between energy consumption, energy prices and economic growth: time series evidence from Asian developing countries. Energy economics, 22(6), 615- 625 . https://doi.org/10.1016/S0140-9883(00)00050-5
  • wokuse, T. O. (2003). Is the export-led growth hypothesis valid for Canada? Canadian Journal of Economics/Revue canadienne d'économique, 36(1), 126- 136. https://www.jstor.org/stable/3131917
  • Becchetti, L., & Rossi, S. P. (2000). The positive effect of industrial district on the export performance of Italian firms. Review of industrial organization, 16(1), 53-68. https://www.jstor.org/stable/41798903
  • Bernard, A. B., & Jensen, J. B. (1999). Exceptional exporter performance: cause, effect, or both? Journal of international economics, 47(1), 1-25. https://doi.org/10.1016/S0022-1996(98)00027-0
  • Cleveland, C. J., & Stern, D. I. (2002). Indicators of natural resource scarcity: a review and synthesis. Handbook of environmental and resource economics, 89-108.
  • Costantini, J. A., & Melitz, M. J. (2007). The Organization of Firms in a Global Economy, Chapter The Dynamics of Firm- Level Adjustment to Trade Liberalization. Harvard University Press.
  • Doraszelski, U. and J. Jaumandreu (2011). R&D and productivity: Estimating endogenous productivity. Ethier, WJ (1979). Internationally decreasing costs and world trade. Journal of International Economics, 9, 1-24
  • Crespo Cuaresma, J., & Wörz, J. (2005). On export composition and growth. Review of World Economics, 141(1), 33-49. https://www.jstor.org/stable/40441033
  • Crone, M., & Roper, S. (2001). Local learning from multinational plants: knowledge transfers in the supply chain. Regional studies, 35(6), 535-548. https://doi.org/10.1080/00343400120065705
  • Diks, C., & Panchenko, V. (2005). A note on the Hiemstra-Jones test for Granger non- causality. Studies in nonlinear dynamics & econometrics, 9(2). https://doi.org/10.2202/1558-3708.1234
  • Farooq, M., & Shakoor, A. (2013). Severe energy crises and solar thermal energy as a viable option for Pakistan. Journal of Renewable and Sustainable Energy, 5(1), 013104. https://doi.org/10.1063/1.4772637
  • Filippini, M., & Pachauri, S. (2004). Elasticities of electricity demand in urban Indian households. Energy policy, 32(3), 429- 436. https://doi.org/10.1016/S0301-4215(02)00314-2
  • Ghaus-Pasha, A., Pasha, H. A., & Zubair, A. (2010). Fiscal equalisation among provinces in the NFC awards. The Pakistan Development Review, 563-576. https://www.jstor.org/stable/41428676
  • Gorg, H., & Ruane, F. (2000). An analysis of backward linkages in the Irish electronics sector. Economic and Social Review, 31(3), 215-236. http://hdl.handle.net/2262/62433
  • Haq, Z. U., Nazli, H., & Meilke, K. (2008). Implications of high food prices for poverty in Pakistan. Agricultural Economics, 39, 477-484. https://doi.org/10.1111/j.1574-0862.2008.00353.x
  • Harrington, J. E., Vernon, J. M., & Viscusi, W. (1996). Economics of regulation and antitrust: MIT press.
  • Higgins, E. T. (1996). Activation: Accessibility, and salience. Social psychology: Handbook of basic principles, 133-168.
  • Hinnant, C. C., & O’Looney, J. A. (2007). IT innovation in local government: Theory, issues, and strategies Modern public information technology systems: Issues and challenges (186-203): Igi Global.
  • Hye, Q. M. A., & Riaz, S. (2008). Causality between energy consumption and economic growth: the case of Pakistan. The Lahore Journal of Economics, 13(2), 45-58. https://www.jstor.org/stable/24813043
  • Kalaitzi, A. (2013). Exports and economic growth in the United Arab Emirates. Paper presented at the Submitted to RIBM Doctoral Symposium. Manchester Metropolitan University Business School.
  • Kamran, M. (2018). Current status and future success of renewable energy in Pakistan. Renewable and Sustainable Energy Reviews, 82, 609-617. https://doi.org/10.1016/j.rser.2017.09.049
  • Khan, B. (2010). What drives interest rate spreads of commercial banks in Pakistan? Empirical evidence based on panel data. SBP Research Bulletin, 6, 15-36.
  • Khan, M. A., & Ahmad, U. (2008). Energy demand in Pakistan: a disaggregate analysis. The Pakistan Development Review, 437-455. https://www.jstor.org/stable/41261233
  • Khoshroo, A., Mulwa, R., Emrouznejad, A., & Arabi, B. (2013). A non-parametric Data Envelopment Analysis approach for improving the energy efficiency of grape production. Energy, 63, 189-194. https://doi.org/10.1016/j.energy.2013.09.021
  • Kirbach, M., & Schmiedeberg, C. (2008). Innovation and export performance: Adjustment and remaining differences in East and West German manufacturing. Econ. Innov. New Techn., 17(5), 435-457. https://doi.org/10.1080/10438590701357189
  • Lariviere, I., & Lafrance, G. (1999). Modelling the electricity consumption of cities: effect of urban density. Energy economics, 21(1), 53-66. https://doi.org/10.1016/S0140-9883(98)00007-3
  • Larudee, M., & Koechlin, T. (1999). Wages, productivity, and foreign direct investment flow. Journal of Economic Issues, 33(2), 419-426. https://www.jstor.org/stable/4227454
  • Lee, C. C. (2005). Energy consumption and GDP in developing countries: a cointegrated panel analysis. Energy economics, 27(3), 415-427. https://doi.org/10.1016/j.eneco.2005.03.003
  • Lee, C. C. (2006). The causality relationship between energy consumption and GDP in G-11 countries revisited. Energy policy, 34(9), 1086-1093. https://doi.org/10.1016/j.enpol.2005.04.023
  • Leonidou, L. C. (2004). An analysis of the barriers hindering small business export development. Journal of Small Business Management, 42(3), 279-302. https://doi.org/10.1111/j.1540-627X.2004.00112.x
  • Lindgren, B.-M., Lundman, B., & Graneheim, U. H. (2020). Abstraction and interpretation during the qualitative content analysis process. International journal of nursing studies, 108, 103632. https://doi.org/10.1016/j.ijnurstu.2020.103632
  • Liu, X., Burridge, P., & Sinclair, P. J. (2002). Relationships between economic growth, foreign direct investment and trade: evidence from China. Applied Economics, 34(11), 1433-1440. https://doi.org/10.1080/00036840110100835
  • Mahmood, Z., & Siddiqui, R. (2000). State of technology and productivity in Pakistan's manufacturing industries: Some strategic directions to build technological competence. The Pakistan Development Review, 1-21. https://doi.org/10.30541/v39i1pp.1-21
  • Masih, A. M., & Masih, R. (1996). Energy consumption, real income and temporal causality: results from a multi-country study based on cointegration and error- correction modelling techniques. Energy economics, 18(3), 165-183. https://doi.org/10.1016/0140-9883(96)00009-6
  • Masih, A. M., & Masih, R. (1997). On the temporal causal relationship between energy consumption, real income, and prices: some new evidence from Asian- energy dependent NICs based on a multivariate cointegration/vector error- correction approach. Journal of policy modelling, 19(4), 417-440. https://doi.org/10.1016/S0161-8938(96)00063-4
  • Mohamed, Z., & Bodger, P. (2003). Analysis of the logistic model for predicting New Zealand electricity consumption.
  • Moini, A. H. (1995). An inquiry into successful exporting: An empirical investigation using a three-stage model. Journal of Small Business Management, 33(3), 9.
  • Narayan, P. K., & Singh, B. (2007). The electricity consumption and GDP nexus for the Fiji Islands. Energy economics, 29(6), 1141-1150. https://doi.org/10.1016/j.eneco.2006.05.018
  • Nocke, V., & Yeaple, S. (2006). Globalization and endogenous firm scope: National Bureau of Economic Research Cambridge, Mass., USA.
  • Robertson, C., & Chetty, S. K. (2000). A contingency-based approach to understanding export performance. International business review, 9(2), 211- 235. https://doi.org/10.1016/S0969-5931(99)00037-2
  • Sahir, M. H., & Qureshi, A. H. (2007). Specific concerns of Pakistan in the context of energy security issues and geopolitics of the region. Energy policy, 35(4), 2031- 2037. https://doi.org/10.1016/j.enpol.2006.08.010
  • Sari, R., Ewing, B. T., & Soytas, U. (2008). The relationship between disaggregate energy consumption and industrial production in the United States: An ARDL approach. Energy economics, 30(5), 2302-2313. https://doi.org/10.1016/j.eneco.2007.10.002
  • Schnable, P. S., Ware, D., Fulton, R. S., Stein, J. C., Wei, F., Pasternak, S., & Graves, T. A. (2009). The B73 maize genome: complexity, diversity, and dynamics. science, 326(5956), 1112-1115. https://doi.org/10.1126/science.1178534
  • Shiu, A., & Lam, P. L. (2004). Electricity consumption and economic growth in China. Energy policy, 32(1), 47-54. https://doi.org/10.1016/S0301-4215(02)00250-1
  • oytas, U., & Sari, R. (2003). Energy consumption and GDP: causality relationship in G-7 countries and emerging markets. Energy economics, 25(1), 33-37. https://doi.org/10.1016/S0140-9883(02)00009-9
  • Stern, D. I. (2000). A multivariate cointegration analysis of the role of energy in the US macroeconomy. Energy economics, 22(2), 267-283. https://doi.org/10.1016/S0140-9883(99)00028-6
  • Taylor, M., Tam, C., & Gielen, D. (2006). Energy efficiency and CO2 emissions from the global cement industry. Korea, 50(2.2), 61.67.
  • Theodosiou, M., & Leonidou, L. C. (2003). Standardization versus adaptation of international marketing strategy: an integrative assessment of the empirical research. International business review, 12(2), 141-171. https://doi.org/10.1016/S0969-5931(02)00094-X
  • Wolde-Rufael, Y. (2005). Energy demand and economic growth: the African experience. Journal of policy modelling, 27(8), 891-903. https://doi.org/10.1016/j.jpolmod.2005.06.003
  • Yoo, S. H. (2005). Electricity consumption and economic growth: evidence from Korea. Energy policy, 33(12), 1627-1632. https://doi.org/10.1016/j.enpol.2004.02.002
  • Yoo, S. H., & Kwak, S. Y. (2010). Electricity consumption and economic growth in seven South American countries. Energy policy, 38(1), 181-188. https://doi.org/10.1016/j.enpol.2009.09.003
  • Zsidisin, G. A., Ellram, L. M., & Ogden, J. A. (2003). The relationship between purchasing and supply management's perceived value and participation in strategic supplier cost management activities. Journal of business logistics, 24(2), 129-154. https://doi.org/10.1002/j.2158-1592.2003.tb00049.x

Cite this article

APA

    APA : Ahmad, Z., Arshad, S., & Anwer, M. J. (2023). Role of Innovation in the Energy Sector for Enhancing Export Performance and Economic Growth. Global Economics Review, VIII(I), 36-49. https://doi.org/10.31703/ger.2023(VIII-I).04

CHICAGO

    CHICAGO : Ahmad, Zohaib, Sumera Arshad, and Muhammad Junaid Anwer. 2023. "Role of Innovation in the Energy Sector for Enhancing Export Performance and Economic Growth." Global Economics Review, VIII (I): 36-49 doi: 10.31703/ger.2023(VIII-I).04

HARVARD

    HARVARD : AHMAD, Z., ARSHAD, S. & ANWER, M. J. 2023. Role of Innovation in the Energy Sector for Enhancing Export Performance and Economic Growth. Global Economics Review, VIII, 36-49.

MHRA

    MHRA : Ahmad, Zohaib, Sumera Arshad, and Muhammad Junaid Anwer. 2023. "Role of Innovation in the Energy Sector for Enhancing Export Performance and Economic Growth." Global Economics Review, VIII: 36-49

MLA

    MLA : Ahmad, Zohaib, Sumera Arshad, and Muhammad Junaid Anwer. "Role of Innovation in the Energy Sector for Enhancing Export Performance and Economic Growth." Global Economics Review, VIII.I (2023): 36-49 Print.

OXFORD

    OXFORD : Ahmad, Zohaib, Arshad, Sumera, and Anwer, Muhammad Junaid (2023), "Role of Innovation in the Energy Sector for Enhancing Export Performance and Economic Growth", Global Economics Review, VIII (I), 36-49

TURABIAN

    TURABIAN : Ahmad, Zohaib, Sumera Arshad, and Muhammad Junaid Anwer. "Role of Innovation in the Energy Sector for Enhancing Export Performance and Economic Growth." Global Economics Review VIII, no. I (2023): 36-49. https://doi.org/10.31703/ger.2023(VIII-I).04