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Short-term and Long-term Employ¬ment Functions in Pakistan’s Large-scale Manufacturing Industries

Zafar Iqbal () and Khalid Hameed Sheikh
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Zafar Iqbal: Department of Management Sciences, National University of Computer and Emerging Sciences, Postal: Lahore Campus, Block-B, Faisal Town - Lahore Pakistan, http://www.nu.edu.pk/
Khalid Hameed Sheikh: Pakistan Institute of Development Economics (PIDE), Postal: Quaid-i-Azam University Campus, P.O. Box. 1091, Islamabad, 44000, Pakistan, http://www.pide.org.pk/

Economia Internazionale / International Economics, 1996, vol. 49, issue 1, 29-39

Abstract: Pakistan, like many other labour-abundant countries, experienced that the growth of industrial employment did not coincide with the growth in industrial output and the performance of the manufacturing sector in terms of employment generation remained very poor during the 1970s and 1980s. This paper provides short-term and long-term employment elasticities with respect to real output and real employment cost for fourteen Pakistan’s large-scale manufacturing industries using the time-series data for the period 1970-87. The estimated short-term and long-term employment elasticities with respect to real output and real employment cost are found, respectively, positive and negative in the case of all selected industries. These elasticities are important for policy perspective, which give policy makers some insights of how an additional employment can be generated in the manufacturing sector in Pakistan.

Date: 1996
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Persistent link: https://EconPapers.repec.org/RePEc:ris:ecoint:0381

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