Sources of Pakistan’s Economic Growth

Economic growth is one of the most important objectives of development policy in almost every country. It depends on the historical accumulation of primary factors of production, e.g. labour and capital, and on technological progress and a combination of socio-political and institutional factors. Owing to interactions among these different factors, it is difficult to delineate the role of each factor in economic growth. It is precisely because of this that a systematic and quantitative study of the sources of growth is indispensable. The growth-accounting framework, introduced by Solow [15] to measure productivity change and subsequently extended by Jorgenson and Griliches [5], Christensen and Jorgenson [1], Hulten [4] and Denison [2], provides an important method with which to study the growth experience of a country.