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Short-term and Long-term Employ¬ment Functions in Pakistan’s Large-scale Manufacturing Industries

Author

Listed:
  • Iqbal, Zafar

    (Department of Management Sciences, National University of Computer and Emerging Sciences)

  • Sheikh, Khalid Hameed

    (Pakistan Institute of Development Economics (PIDE))

Abstract

Pakistan, like many other labour-abundant countries, experienced that the growth of industrial employment did not coincide with the growth in industrial output and the performance of the manufacturing sector in terms of employment generation remained very poor during the 1970s and 1980s. This paper provides short-term and long-term employment elasticities with respect to real output and real employment cost for fourteen Pakistan’s large-scale manufacturing industries using the time-series data for the period 1970-87. The estimated short-term and long-term employment elasticities with respect to real output and real employment cost are found, respectively, positive and negative in the case of all selected industries. These elasticities are important for policy perspective, which give policy makers some insights of how an additional employment can be generated in the manufacturing sector in Pakistan.

Suggested Citation

  • Iqbal, Zafar & Sheikh, Khalid Hameed, 1996. "Short-term and Long-term Employ¬ment Functions in Pakistan’s Large-scale Manufacturing Industries," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 49(1), pages 29-39.
    • Handle: RePEc:ris:ecoint:0381
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