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Human Capital Spillovers, Productivity and Growth in the Manufacturing Sector of Pakistan

Abdul Hamid and J. Hannas Pichler
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Abdul Hamid: Centre for Poverty Reduction and Society Policy Development (CPRSPD), UNDP and Planning Comission, Government of Pakistan.
J. Hannas Pichler: Vienna University of Economics and Business, Austria.

The Pakistan Development Review, 2009, vol. 48, issue 2, 125-140

Abstract: Manufacturing is an important sector of Pakistan’s economy. The main focus of this paper is to analyse the major factors of value-added growth and productivity in the manufacturing sector by using Translog Production Technology over the period 1971-72 to 2004-05. The empirical findings show that the contribution of productivity and human capital is around one- third of the total value-added growth in manufacturing sector which is less than the contribution attributed to these factors in developed and many other developing countries. Conventional factors like capital and labour are still the mainstay in the value-added growth of Pakistan’s manufacturing sector.

Keywords: Human Capital Spillovers; Total Factor Productivity; Absolute and Relative Shares (search for similar items in EconPapers)
JEL-codes: O1 O3 O4 O14 O15 O31 (search for similar items in EconPapers)
Date: 2009
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