Innovation, total factor productivity and economic growth in Pakistan: a policy perspective

Journal of Economic Structures - Tập 8 - Trang 1-18 - 2019
Hummera Saleem1, Malik Shahzad2, Muhammad Bilal Khan3, Bashir Ahmad Khilji4
1Department of Economics, Wuhan University, Wuhan, People’s Republic of China
2University of Lahore, Lahore, Pakistan
3Department of Accounting, Wuhan University, Wuhan, People’s Republic of China
4Department of Business Administration and Commerce, G.C University Faisalabad Layyah Campus, Layyah, Pakistan

Tóm tắt

The objective of this study is to endorse the driving factors behind total factor productivity (TFP) and economic growth in Pakistan. Pakistan’s average growth rate is 5% for last few decades, and although this growth level is satisfactory, Pakistan faced several formidable challenges yet. The economic growth has been determined mainly through labor-intensive technology and export-oriented manufacturing activities. However, TFP is assessed from the aggregate production function using the Cobb–Douglas production function that permits for the simultaneous expansion of outputs and contraction of inputs. The annual timer series data have been extracted from 1972–2016 World development Indicator (WDI) for this study. The overall results reveal that almost all variables are statistical significant. Moreover, innovation significantly contributes to economic growth and production level in Pakistan. This analysis may have significant suggestions to policy makers in Pakistan and other emerging economies when framing sustainable growth policy.

Tài liệu tham khảo

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