Productivity Growth and Complementary Assets: An Empirical Analysis of Pakistan

Tariq Javed, & Maqbool, Ahmed Gondal
2014 International SAMANM Journal of Finance and Accounting   unpublished
This paper analyzed the nonlinear relationship between economic productivity and complementary assets of Pakistan. The results indicate that in the long run there are at-least three co-integrating equations. In the second stage of analysis, the rate of change in complementary assets is calculated and regressed on the rate of change in productivity. The results give positive and increasing return to scale for labor and diminishing return to scale for capital formation.