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

Hummera Saleem (), Malik Shahzad (), Muhammad Bilal Khan () and Bashir Ahmad Khilji ()
Additional contact information
Hummera Saleem: Wuhan University
Malik Shahzad: University of Lahore
Muhammad Bilal Khan: Wuhan University
Bashir Ahmad Khilji: G.C University Faisalabad Layyah Campus

Journal of Economic Structures, 2019, vol. 8, issue 1, 1-18

Abstract: Abstract 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.

Keywords: Innovation; Economic growth; Total factor production; Pakistan (search for similar items in EconPapers)
JEL-codes: D24 D33 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://link.springer.com/10.1186/s40008-019-0134-6 Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jecstr:v:8:y:2019:i:1:d:10.1186_s40008-019-0134-6

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40008

DOI: 10.1186/s40008-019-0134-6

Access Statistics for this article

Journal of Economic Structures is currently edited by Shigemi Kagawa and Kazuhiko Nishimura

More articles in Journal of Economic Structures from Springer, Pan-Pacific Association of Input-Output Studies (PAPAIOS) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().