• Significantly low to achieve required GDP growth of 7-8pc
• High-productivity growth sectors mostly based on services or technology
ISLAMABAD: Pakistan’s average productivity growth remained just 1.5 per cent from 2010 to 2020, significantly low to achieve the required GDP growth rate of around 7-8pc on a sustainable basis, a new study shows.
The study — titled Sectoral Total Factor Productivity in Pakistan and conducted by the planning ministry and the think tank Pakistan Institute of Development Economics (PIDE) — says that the growth of productivity is a crucial determinant of an economy’s growth that has to be pushed higher to over 3pc.
The study used unique listed and non-listed data from 1,321 firms divided into 61 sectors to estimate productivity growth in the country. Its results show that high-productivity growth sectors are mostly based on services or tech, whereas those with medium to low or negative productivity growth are in manufacturing.
Total factor productivity (TFP) growth is a crucial determinant of long-term output growth. Countries that manage to boost their TFP growth grow at a much higher rate and for a sustained period. On the other hand, countries growing without a significant contribution from the TFP growth experience difficulty in maintaining a sustainable growth trajectory.
According to the study, evidence shows that economies that had TFP growth of more than 3pc had a GDP growth rate of 8pc or more, whereas TFP growth of less than 3pc was...
Read Full Story: https://news.google.com/__i/rss/rd/articles/CBMiXGh0dHBzOi8vd3d3LmRhd24uY29tL25ld3MvMTczMTg4NC9wYWtpc3RhbnMtcHJvZHVjdGl2aXR5LWdyb3d0aC1hdmVyYWdlZC0xNXBjLWluLTIwMTBzLXN0dWR50gEA?oc=5
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.
