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Pakistan Productivity Profile 1965-2005

Pakistan Productivity Profile 1965-2005

by Hafiz Khalil Ahmad and Dr. Hafiz Khalil Ahmad
Publication Date: 13/09/2011
This book is focused to point out sources of economic growth and estimation of total factor productivity (TFP) for the Pakistan economy, as a whole, as well as for its major sectors (agriculture, manufacturing, and services). For this purpose the study utilized three different techniques to obtain reliable estimates of TFP for Pakistan economy. These techniques are, growth accounting technique, index number technique and econometric technique. The study covers the period from 1965 to 2005. The empirical evidence indicates that traditional measures of TFP tend to overestimate, by ignoring variation in work hours, education and skills, as well as variation in capacity utilization resulting from business fluctuations. This study avoids pitfalls of earlier studies by improving upon reliable measures of factor inputs. This feature of the study makes it distinct from previous studies and enables it to provide reliable results. Hence, based upon such reliable results efficient economic policy may be formulated.
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