Macro determinants of total factor productivity in Pakistan (original) (raw)

AI-generated Abstract

This study investigates the macroeconomic determinants of total factor productivity (TFP) in Pakistan, utilizing a comprehensive time series dataset spanning from 1960 to 2003. By employing a conventional growth accounting framework and a simple regression approach, the research identifies significant factors affecting TFP, including inflation, foreign direct investment, financial sector depth, and government consumption, among others. Notably, education expenditures and trade openness exhibit negative correlations with TFP. The findings emphasize the importance of macroeconomic variables in shaping productivity growth within the context of Pakistan's economy.