Author/Authors :
ILYAS, MUHAMMAD Superior University, Pakistan , AHMAD, HAFIZ KHALIL University of the Punjab, Pakistan , AFZAL, MUHAMMAD University of the Punjab, Pakistan , MAHMOOD, TAHIR University of Veterinary and Animal Sciences, Pakistan
Abstract :
This study employed bounds test based cointegration technique using annual time series data from 1965 to 2007 for exploring determinants of manufacturing value added in Pakistan. Three determinants included in the study were: total factor productivity (TFP), price level of investment and trade openness. TFP turned out to be the most significant determinant of manufacturing value added both in the short and long run. The price level of investment affected manufacturing value added negatively and significantly. Trade openness, however, turned out to be insignificant. The study recommends enhancement of TFP and stabilizing prices of investment goods for accelerating growth of manufacturing value added in Pakistan
