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Macro Determinants of Total Factor Productivity in Pakistan

Author

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  • Khan, Safdar Ullah Khan

Abstract

By utilizing the conventional growth accounting framework, this study first estimates the Total Factor Productivity (TFP) in Pakistan and then establishes its macro determinants. Covering the sample from 1960 to 2003, the results confirm that macroeconomic stability, foreign direct investment, and financial sector development play an important role in the increase of TFP. Interestingly, education expenditures turn out to be insignificant.

Suggested Citation

  • 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.
  • Handle: RePEc:pra:mprapa:8693
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    File URL: https://mpra.ub.uni-muenchen.de/8693/1/MPRA_paper_8693.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Salman Ahmad & Attiya Yasmin Javid, 2015. "Analysing the Price Cost Markup and Its Behaviour over the Business Cycles in Case of Manufacturing Industries of Pakistan," PIDE-Working Papers 2015:117, Pakistan Institute of Development Economics.
    2. Jalil, Abdul & Mahmood, Tahir & Idrees, Muhammad, 2013. "Tourism–growth nexus in Pakistan: Evidence from ARDL bounds tests," Economic Modelling, Elsevier, vol. 35(C), pages 185-191.
    3. World Bank, 2013. "Pakistan : Finding the Path to Job-Enhancing Growth," World Bank Other Operational Studies 15979, The World Bank.
    4. Shah Hussain, 2008. "Sources of Real Exchange Rate Misalignment Evidence from Pakistan," SBP Working Paper Series 26, State Bank of Pakistan, Research Department.
    5. Abdul Jalil & Hafiz Khuram Nadeem Abbasi & Nazia Bibi, 2016. "Military expenditures and economic growth: allowing structural breaks in time series analysis in the case of India and Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(4), pages 1487-1505, July.
    6. Mahmood Mahmoudzadeh & Seyyed Ali Zeytoon Nejad Moosavian, 2016. "Measuring and Analyzing the Shares of Economic Growth Sources in the Mining Sector of Iran: A Neoclassical Growth Accounting Approach," Papers 1612.00833, arXiv.org.
    7. Jalil, Abdul & Feridun, Mete & Ma, Ying, 2010. "Finance-growth nexus in China revisited: New evidence from principal components and ARDL bounds tests," International Review of Economics & Finance, Elsevier, vol. 19(2), pages 189-195, April.
    8. Ahmed, Qazi Masood & Hyder, Kalim, 2007. "Determinants of Total Factor Productivity in Pakistan," MPRA Paper 16253, University Library of Munich, Germany, revised Jun 2007.
    9. Sarath Delpachitra & Pham Van Dai, 2012. "The Determinants of TFP Growth in Middle Income Economies in ASEAN: Implication of Financial Crises," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 11(1), pages 63-88, June.
    10. Amjad, Rashid & Awais, Namra, 2016. "Pakistan's productivity performance and TFP trends 1980-2015: Cause for real concern," MPRA Paper 75017, University Library of Munich, Germany.
    11. Rashid Amjad & Namra Awais, 2016. "Pakistan’s Productivity Performance and TFP Trends, 1980–2015: Cause for Real Concern," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(Special E), pages 33-63, September.
    12. Akanbi, Olusegun A. & Du Toit, Charlotte B., 2011. "Macro-econometric modelling for the Nigerian economy: A growth–poverty gap analysis," Economic Modelling, Elsevier, vol. 28(1), pages 335-350.
    13. Jalil, Abdul, 2014. "Energy–growth conundrum in energy exporting and importing countries: Evidence from heterogeneous panel methods robust to cross-sectional dependence," Energy Economics, Elsevier, vol. 44(C), pages 314-324.
    14. Jesus Felipe, 2009. "Does Pakistan Need To Adopt Inflation Targeting? Some Questions," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 5, pages 113-162.
    15. S. Adnan H. A. S. Bukhari & Safdar Ullah Khan, 2008. "Estimating Output Gap for Pakistan Economy: Structural and Statistical Approaches," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 4, pages 31-60.
    16. Muhammad Akmal, 2011. "Inflation and Relative Price Variability," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 7, pages 1-9.

    More about this item

    Keywords

    Growth Accounting; Total Factor Productivity; Macro Determinants; Pakistan;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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