Manes, Eric2013-02-152013-02-152009-12https://hdl.handle.net/10986/12377Pakistan has faced a seismic shift in its global and domestic economic landscape which until recently limited policy options to address investment climate concerns. External shocks, internal policy inaction and political turmoil placed the country in a precarious economic condition, calling on the authorities to take a hard look at the policy choices ahead. Macroeconomic instability resulting in inflation, exchange rate depreciation, and a rapid depletion in foreign reserves became acute in 2007-08, with the adjustment accompanied by a reduction in investment, export and output growth. The recent slowdown in global demand for world trade along with supply shocks from the domestic economy has exacerbated an already monumental challenge for Pakistani firms to prosper and policy makers to respond. As external market conditions and Pakistan's own stabilization program temper economic expectations, opportunities abound to lay the foundation for expansion. Given Pakistan's geopolitical positioning, growing labor participation rates, and improvements in the standard of living, significant poverty outcomes can be achieved through sustained economic growth. Even, in the short run, during periods of slower growth, banking system weakness, and corporate distress, Pakistan can take the opportunity to position itself for the inevitable global rebound. Concerted efforts now can improve firm level productivity, fluidity of markets for labor, capital and land, as well as goods, and therefore, better resource use and global competitiveness.en-USCC BY 3.0 IGOALLOCATIVE EFFICIENCYAVERAGE PRODUCTIVITYBIASESBOOK VALUEBOOTSTRAPCOEFFICIENTSCOMPETITIVENESSCONDITIONAL EXPECTATIONCONSTANT RETURNS TO SCALECONSTANT TERMCOVARIANCEDEPENDENT VARIABLEDEPENDENT VARIABLESDUMMY VARIABLESDYNAMIC PANELECONOMETRIC ANALYSISECONOMETRIC METHODOLOGYECONOMETRIC METHODSECONOMETRIC MODELECONOMETRIC MODELSECONOMETRICSECONOMIC GROWTHECONOMIC PERFORMANCEECONOMICSELECTRICITYEMPIRICAL ANALYSISEMPLOYMENTENDOGENOUS VARIABLESEQUATIONSEQUIPMENTERRORERROR TERMERROR TERMSEXPLANATORY VARIABLESEXPORT MARKETEXPORT MARKETSEXPORTSEXTRAPOLATIONFACTOR MARKETSFIXED EFFECTSFOREIGN DIRECT INVESTMENTFUNCTIONAL FORMSGDPGDP PER CAPITAGENERATING FUNCTIONSGLOBAL MARKETSGRANGER CAUSALITYIMPUTATIONIMPUTATION ALGORITHMIMPUTATION METHODSINCOMEINCOME GROUPSINCONSISTENT ESTIMATESINNOVATIONINTERNATIONAL COMPARISONSINVENTORYLABOR DEMANDLABOR FORCELABOR MARKETLABOR MARKETSLABOR PRODUCTIVITYLARGE NUMBERLIKELIHOOD FUNCTIONLINEAR FUNCTIONLINEAR PROBABILITYLIVING STANDARDSLOG LIKELIHOOD FUNCTIONLOGARITHMSMANUFACTURINGMARKET SHAREMARKET SHARESMATRIXMEASUREMENT ERRORSMISSING DATAMISSING OBSERVATIONSMISSING VALUEMISSING VALUESMONOPOLIESMULTIPLE IMPUTATIONMULTIPLE IMPUTATIONSNONLINEAR MODELSNORMAL DISTRIBUTIONSNUMBER OF OBSERVATIONSNUMBER OF REGRESSORSOUTLIERSPANEL DATAPERFORMANCE MEASURESPREDICTIONSPRIVATE SECTORPROBABILITIESPROBABILITYPROBABILITY MODELSPRODUCTION FUNCTIONPRODUCTION FUNCTIONSPRODUCTIVITIESPRODUCTIVITYPRODUCTIVITY INCREASESR&DRANDOM EFFECTSRANDOM EFFECTS ESTIMATORRANDOM VARIABLERATE OF CHANGEREAL WAGESREGRESSION ANALYSISREGRESSION EQUATIONREGRESSION MODELRESULTRESULTSSAMPLE MEANSAMPLE MEANSSAMPLE SELECTIONSAMPLE SIZESELECTION MODELSENSITIVITY ANALYSISSIMULTANEOUS EQUATIONSSTANDARD ERRORSSTATISTICAL METHODOLOGYTELECOMMUNICATIONSTOTAL FACTOR PRODUCTIVITYTRANSITION ECONOMIESVARIABILITYWAGESWorld Bank10.1596/12377