Abstract
The purpose of this study is to examine the influence of energy consumption on services sector output of 69 developing countries over the period from 1990 to 2014. The results of the study are estimated using Panel ARDL technique after examining stationary using Levin, Lin & Chu test of all the variables. The results of Levin, Lin & Chu test exhibit that Services sector output, labor force, capital formation, energy consumption, GDP Deflator and broad money are stationary at level while Government expenditure is stationary at first difference. The long run results finalizes that broad money, energy consumption, labor force , GDP deflator, government expenditure and capital formation are increasing services sector output of developing countries in the long run.
Keyword(s)
Services Sector, Labor Force, capital, Fiscal Policy, Monetary Policy, energy consumption, Price Level