Ahmed, Qazi Masood and Hyder, Kalim (2007): Determinants of Total Factor Productivity in Pakistan. Published in: Working Papers/Research Report 68 (June 2007)
Download (298kB) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||Determinants of Total Factor Productivity in Pakistan|
|Keywords:||Productivity; Growth; Human Capital; employment; TFP;|
|Subjects:||O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence|
|Depositing User:||Mr Mahmood ul Hasan Khan|
|Date Deposited:||15. Jul 2009 13:36|
|Last Modified:||13. Feb 2013 22:12|
Anthony Enisan Akinlo (2005) Impact of Macroeconomic Factors on Total Factor Productivity in Sub-Saharan African Countries” Research Paper No. 39 UN-WIDER
Barro, R. J. (1990). ‘Government spending in a simple model of endogenous growth’.Journal of Political Economy 98(5 part 2): S103-S125.
Barro, R. J. and Lee, J. (1994). ‘International comparisons of educational attainments’. Journal of Monetary Economics 32: 363-94.
Barro, R. J. and Sala-I-Martin, X. (1995). Economic Growth. New York: McGraw-Hill.
Coe, D. T. and Helpman, E. (1995). ‘International R&D spillovers’. European Economic Review 39: 859-87.
Cororation, C. B. (2004). ‘National Report: Philippines’, in Measuring Total Factor Productivity: Survey Report. Tokyo: Asian Productivity Organization.
Edwards, S. (1998). ‘Openness, productivity and growth: What do we really know?’ Economic Journal 108: 383-98.
Englander, S. and Gurney, A. (1994). ‘Medium-term determinants of OECD productivity’. OECD Economic Studies 22: 49-109.
Goldar, B. N. and Kumari, A. (2002). ‘Import liberalization and productivity growth in India industries in the 1990s’. Working Paper E/219/2002. Delhi: Institute of Economic Growth.
Griliches, Z. (1980). ‘Returns to research and development expenditures in the private sector’, in J. Kendrick and B. Vaccara (eds), New Development in Productivity Measurement and Analysis. Chicago: University of Chicago Press: pp. 419-54.
Griliches, Z. (1992). ‘The search for R&D spillovers’. Scandinavian Journal of Economics 94(supplement): 29-47.
Griliches, Z. (1994). ‘Productivity, R&D and the data constraint’. American Economic Review 84(1): 1-23.
Government of Pakistan (various Issues), Pakistan Economic Survey, Finance Ministry
Grossman, G. M. and Helpman, E. (1991). Innovation and Growth in the Global Economy. Cambridge MA: MIT Press.
Haddad, M. (1993). ‘How trade liberalization affected productivity in Morocco’. Policy Research Working Paper 1096. Washington DC: World Bank.
Pasha, H.A., Aynul Hasan, and others 1996, Integrated Social-Sector Macroeconometric Model for Pakistan, Pakistan. Development Review, 35(4) 1996. PP 567-79
Hafiz, A. Pasha., Aisha, Ghaus-Pasha. and Kalim Hyder. 2002). “The Slowing Down of the Growth of Total Factor Productivity in Pakistan,” Social Policy and Development Centre, Research Report Number 44.
Harrison, A. E. (1994). ‘Productivity, imperfect competition and trade reform: Theory and evidence’. Journal of International Economics 36: 53-73.
Harrison, A. E. (1996). ‘Openness and growth: A time-series, cross-country analysis for developing countries’. Journal of Development Economics 48: 419-47.
Hercowitz, Z., Lavi, Y., and Melnick, R. (1999). ‘The impact of macroeconomic factors on productivity in Israel, 1960-96’. Bank of Israel Economic Review 72: 103-124.
Kanamori, H 1972. “What Accounts for Japan’s High rate of Growth?”, Review of Income and Wealth, 18(2), pp 155-71.
Khan, Safdar Ullah. (2006). “Macro Determinants of Total Factor Productivity in Pakistan,” State Bank of Pakistan, Working Paper Number 10.
Kim, E. (2000). ‘Trade liberalization and productivity growth in Korean manufacturing industries: Price protection, market power and scale efficiency’. Journal of Development Economics 62: 55-83.
Kim, K. W. (1994). ‘Trade and industrialization policies in Korea: An overview’, in G. K.Helleiner (ed.), Trade Policy and Industrialization in Turbulent Times. London and New York: Routledge, for UNU-WIDER.
Krugman, Paul. 1994 “The Myth of Asia’s Miracle”, Foreign Affairs, 73(6), pp 62.
Miller, S. M. and Upadhyay, M. P. (2000). ‘The effects of openness, trade orientation, and human capital on total factor productivity’. Journal of Development Economics 63: 399-423. Mohammad Sabir and Qazi Masood Ahmed. 2003). “Macroeconomic Reforms and Total Factor Productivity Growth in Pakistan: An Empirical Analysis,” Social Policy and Development Centre, Conference Paper No.55
Ramsey, F. P. (1928). ‘A mathematical theory of saving’. Economic Journal 38: 543- 59.
Romer, P. M. (1990). ‘Endogenous technological change’. Journal of Political Economy 98(5): 71-102.
Romer, P. M. (1992). ‘Two strategies for economic development: using ideas and producing ideas’. World Bank Annual Conference on Economic Development. Washington DC: World Bank.
Sachs, F. and Warner, A. (1995). ‘Economic reform and the process of global integation’. Brookings Papers on Economic Activity 1995(1): 1-118.
Samuelson, P. A. (1958). ‘An exact consumption-loan model of interest with or without the social contrivance of money’. Journal of Political Economy 66: 467-82.
Solow, R. M. (1956). ‘A contribution to the theory of economic growth’. Quarterly Journal of Economics 70: 65-94.
Solow, R. M. (1957). ‘Technical change and the aggregate production function’. The Review of Economics and Statistics 39: 312-20.
Wizarat, S. 1981 “Technological Change in Pakistan’s Agriculture”, Pakistan. Development Review, 20(4), 1981, pp 427-45.
Yanrui Wa (1995) “Productivity Growth, Technological Progress and Technical Efficiency change in China: A Three-sector Analysis” Journal of Comparative Economics, 21, 207-229.