Pakistan Productivity Profile 1965-2005
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his study has used three different approaches -- econometric approach, growth accounting approach, and index number approach -- to study TFP and sources of growth in Pakistan. In this study, we have used three different techniques, namely, the growth accounting technique, the index numbers technique, and the econometric technique, to obtain estimates of TFP growth at the aggregate level of Pakistan economy as well as at the sectoral levels. A better measurement of factor inputs was used. In this study, ordinary least squares (OLS) technique was used to estimate the sources of TFP growth both at the aggregate level and at the sectoral level. The study covers the period from 1965 to 2005. The necessary data required for the estimation of TFP and sources of growth were taken from the following secondary sources of data: IMF (various issues), International Financial Statistics. Pakistan, (various issues), Pakistan Economic Survey, Finance Division, Islamabad. Pakistan, (1999), 50 Years of Pakistan in Statistics, Volume I - Summary, Federal Bureau of Statistics, Statistics Division, Islamabad, June. Pakistan, (2006), Census of Manufacturing Industries 20005-06, Federal Bureau of Statistics, Statistics Division, Islamabad. The data contained in the above mentioned sources are frequently used by researchers. However, in case of developing countries the officially published data are highly unreliable and involve many mistakes. In the present study, the required data were taken from alternative sources. These data were checked for internal consistency.
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About the Book
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.
About the Author
Dr. Khalil Ahmad is currently working as Assistant Professor at Economic Department, University of the Punjab, Lahore, Pakistan. He holds Ph.D. in Economics from Punjab University. Over Twenty two year's teaching experience and 16 research articles published in HEC recognized National and Foreign journals are on his credit. In addition, he has already published two books on Macroeconomics. He has been teaching as well at Superior University Pakistan and at Hailey College of Commerce, Institute of Administrative Science and Institute of Education and Research, University of the Punjab Lahore. His writing style is very simple but comprehensive, convincing and appealing.