Factors’ Employment Absorption, Growth and Income Distribution through Foreign Trade: Pakistan’s Case

Despite the recent migration of Pakistan’s labour to the Middle East countries, Pakistan is still characterized as a labour-abundant and capital-scarce developing country. As such, it is important that Pakistan’s production structure should be such as to employ greater labour and lesser capital per unit of output in the different sectors of the economy. To provide pertinent information to the policy makers in this regard, we here try to estimate how much of labour and capital are employed and absorbed per unit of output in Pakistan’s internationally traded goods.