16.03.2015 Views

Special Edition-07.pdf - Lahore School of Economics

Special Edition-07.pdf - Lahore School of Economics

Special Edition-07.pdf - Lahore School of Economics

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

24<br />

A. R. Kemal<br />

while productivity growth is quite encouraging it needs to be noted that it<br />

reflects rather poor levels <strong>of</strong> productivity levels in the base year and has<br />

been just catching up through learning by doing. There has been hardly any<br />

growth in productivity arising from technological development and human<br />

resource development.<br />

Table-6: Trends in Total Factor Productivity<br />

(%age Growth Rates)<br />

Sector<br />

Contribution <strong>of</strong><br />

GDP*<br />

Capital Labour TFP<br />

Overall 5.31 2.48 1.17 1.66<br />

Agriculture 3.89 2.70 0.82 0.37<br />

Manufacturing 6.39 2.23 0.94 3.21<br />

Contribution to<br />

Aggregate Growth 46.62 22.12 31.26<br />

Agriculture Growth 69.33 21.11 9.57<br />

Manufacturing Growth 34.99 14.74 50.27<br />

Source: Kemal, Muslehuddin and Qadir (2002)<br />

TFP growth in the manufacturing sector has shown wide variations.<br />

It has accounted for almost a 3% increase in output per annum in the 1960s<br />

and 1980s, but it was quite low in the 1970s and in the 1990s. In the<br />

1990s it was just 0.78%. However, in the manufacturing sector it was<br />

1.64%.<br />

Table-7: Trends in Total Factor Productivity during 1990s (%)<br />

Sector<br />

Growth Rates<br />

GDP Capital Labour Residual<br />

Overall 4.41 2.38 1.25 0.78<br />

Agriculture 4.54 2.21 0.81 1.52<br />

Manufacturing 3.99 2.09 0.25 1.64<br />

Contribution to<br />

Overall Aggregate Growth 53.97 28.25 17.78<br />

Agriculture Growth 48.63 17.83 33.55<br />

Manufacturing Growth 52.54 6.26 41.20<br />

Source: Kemal, Muslehuddin and Qadir (2002).

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!