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Determinants of Total Factor Productivity in Pakistan

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  • Ahmed, Qazi Masood
  • Hyder, Kalim

Abstract

The role of productivity in accelerating the pace of economic growth is well recognized in economic literature and this paper shows that Pakistan’s case is no exception. The purpose of the paper was also to see the effect of government fiscal policy, monetary policy and other economic measures on TFP. It shows that these policies affect TFP through human capital endowments of employed labor force, providing better physical infrastructure and other facilitation to incorporate technology in the production process. Using data of the Pakistan economy from 1973 to 2006 both at aggregate and dis-aggregated levels i.e. Agriculture, Manufacturing, Construction, Electricity and Gas, and Other Sectors, the paper has tried to explain TFP for seven sub-periods equally divided into five years.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16253.

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Date of creation: Mar 2007
Date of revision: Jun 2007
Handle: RePEc:pra:mprapa:16253

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Related research

Keywords: Productivity; Growth; Human Capital; employment; TFP;

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References

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  1. Harrison, Ann E., 1994. "Productivity, imperfect competition and trade reform : Theory and evidence," Journal of International Economics, Elsevier, vol. 36(1-2), pages 53-73, February.
  2. Harrison, Ann, 1996. "Openness and growth: A time-series, cross-country analysis for developing countries," Journal of Development Economics, Elsevier, vol. 48(2), pages 419-447, March.
  3. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  4. Kim, Euysung, 2000. "Trade liberalization and productivity growth in Korean manufacturing industries: price protection, market power, and scale efficiency," Journal of Development Economics, Elsevier, vol. 62(1), pages 55-83, June.
  5. Zvi Griliches, 1980. "Returns to Research and Development Expenditures in the Private Sector," NBER Chapters, in: New Developments in Productivity Measurement, pages 419-462 National Bureau of Economic Research, Inc.
  6. Haddad, Mona, 1993. "How trade liberalization affected productivity in Morocco," Policy Research Working Paper Series 1096, The World Bank.
  7. Khan, Safdar Ullah Khan, 2005. "Macro Determinants of Total Factor Productivity in Pakistan," MPRA Paper 8693, University Library of Munich, Germany, revised 10 Sep 2005.
  8. Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, University of Chicago Press, vol. 66, pages 467.
  9. SHAHIDA WlZARAT, 1981. "Technological Change in Pakistan's Agriculture: 1953-54 to 1978-79," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 20(4), pages 427-445.
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