Factor Utilisation in Manufacturing: Evidence from Pakistan
During the past decade, Pakistan has experienced jobless growth with the employment growth in its manufacturing sector lagging behind the growth in its GDP. This is of concern as Pakistan's growing labour force, lacking social safety nets and financial assets, rely on employment as their sole s...
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| Veröffentlicht in: | Pakistan development review 2011-12, Vol.50 (4), p.515-528 |
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| creator | Shaikh, Sahar Amjad Khan, Bisma Haseeb |
| description | During the past decade, Pakistan has experienced jobless growth with the employment growth in its manufacturing sector lagging behind the growth in its GDP. This is of concern as Pakistan's growing labour force, lacking social safety nets and financial assets, rely on employment as their sole source of income. Thus employment is the main link between economic growth and poverty reduction. This paper aims to investigate the nature of this job-less growth by using the Levinsohn and Petrin (2003) methodology to estimate the production functions for the industries and calculate the rate of factor utilisation in the manufacturing sector. Our hypothesis is that labour under-utilisation may be one of the driving factors behind this jobless growth. Finding lower than optimal employment for production and non-production workers across different industries, it further tries to establish the possible links between factor utilisation, productivity and other institutional characteristics of the firm. Policy recommendations are made on the basis of this analysis. |
| doi_str_mv | 10.30541/v50i4iipp.515-529 |
| format | Article |
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This is of concern as Pakistan's growing labour force, lacking social safety nets and financial assets, rely on employment as their sole source of income. Thus employment is the main link between economic growth and poverty reduction. This paper aims to investigate the nature of this job-less growth by using the Levinsohn and Petrin (2003) methodology to estimate the production functions for the industries and calculate the rate of factor utilisation in the manufacturing sector. Our hypothesis is that labour under-utilisation may be one of the driving factors behind this jobless growth. Finding lower than optimal employment for production and non-production workers across different industries, it further tries to establish the possible links between factor utilisation, productivity and other institutional characteristics of the firm. 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| ispartof | Pakistan development review, 2011-12, Vol.50 (4), p.515-528 |
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| source | JSTOR Archive Collection A-Z Listing; EZB-FREE-00999 freely available EZB journals |
| subjects | Analysis Economic aspects Economic growth Employment Factor proportions Gross domestic product Human resource management Industrial production Industrial productivity Labor Labor market LABOUR MARKET AND WAGE STRUCTURE Manufacturing industries Manufacturing industry Pakistan Production capital Production estimates Production functions Productivity Unemployment |
| title | Factor Utilisation in Manufacturing: Evidence from Pakistan |
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