A COMPARISON OF THE CONTRIBUTION OF TOTAL FACTOR PRODUCTIVITY TO ECONOMIC GROWTH IN PAKISTAN WITH SELECTED ASIAN COUNTRIES
Keywords:
Total Factor Productivity, Growth Accounting Method, Human Capital, Physical CapitalAbstract
This paper concentrates on the comparison of the contribution of Total Factor Productivity (TFP) to Economic Growth in Pakistan with selected Asian countries in the presence of human capital. The paper used Growth Accounting Method for this purpose. The results show that TFP is major contributor to economic growth in all selected countries except India and Bangladesh. Physical capital is chief source of economic growth in India and Bangladesh while it is 2nd largest contributor to the growth rate of Gross Domestic Product in remaining countries. Similarly, human capital made considerable contribution to economic growth in India, Bangladesh, Nepal and Indonesia.
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