简介：Today,manydevelopingcountriesarefacingsevereshortageofelectricityproductionintheireconomieswhichresultsintoawideninggapbetweenelectricityproductionandconsumption.Thispaperemploysthree-stepmethodologyofUnitRoot,JohansenCointegration,andVectorErrorCorrectionMechanismtoexaminewhetherthereexistsshort-,long-run,uni-,orbi-directionalcausalityamongeconomicgrowth,electricityproduction,andinflationforthreeSouthAsianeconomiesnamely,India,Pakistan,andBangladeshcoveringtheperiod1973-2014.ThispaperfindstheneutralityhypothesisintheshortrunforIndia,Pakistan,andBangladesh.Forthelongrun,thetestresultindicatesthatdifferenthypothesisexistsforthethreecountriesundertheanalysis.Thisimpliesthatpoliciesandstrategiesforincreasingtheinstalledcapacityofelectricitygenerationcanleadtowardsprosperouseconomicgrowthinthelongrun.