A Time Series Analysis of Investigating the Influence of Sectoral Output on Employment in Pakistan

Abstract

The present study aims at investigating the influence of Sectoral Output (agriculture, industrial and services sector output) on the employment in the Pakistan using annual data ranging from 1972 to 2014. Results are estimated using log-log forms of the equations. The study applies unit root test and has found order of integration as 1. The long run coefficients are estimated using Johansen co-integration test which suggests agriculture; Industrial & Services sectors output and exports as positively linked with employment. Consumer Price Index, Exchange rate and Population may have a positive as well as negative link with employment. Short run results show converges towards the long run equilibrium.

Keywords: Sectoral Output, Employment, Exchange rate, Population, Johansen Co-integration test, Consumer Price Index, Exports

JEL Classification: C13, C32, E24, E31, F18, O47, Q10, L60, P23