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Title: |
Factor Demand in Pakistan's Manufacturing
Sector |
| Author: |
Khan, Ashfaque
H. |
| Author
Affiliation: |
Pakistan Inst
Dev Econ |
| Source: |
International Economic Journal, Autumn 1988, v. 2, no. 3, pp. 51-59 |
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Publication Date: |
Autumn 1988 |
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Abstract: |
This paper estimates factor demand
function by choosing appropriate technology. Departing from the
conventional practice of using labor and capital as factor inputs we
extend the list of factors of production by including energy. Since we
have more than two factor inputs the two-level (nested) CES production
function is the natural choice for the appropriate technology. Using
this technology we derive the factor demand functions and estimate these
for Pakistan's manufacturing sector covering a period from 1959-60 to
1982-83. The output elasticity of labor, capital and energy are found to
be 0.47, 0.66 and 0.16 respectively. These informations, in particular,
the employment elasticity are extremely important for manpower planning.
These findings confirm the capital intensive structure of Pakistan's
manufacturing units. |
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