Abstract:
From a technological perspective, the paper is mainly concerned with
finding the employment potential in different groups of industries of Pakistan.
The role of factor prices in determining techniques of production in the
industrial sector through elasticity of substitution has been analysed. Besides
taking the large-scale manufacturing sector as a whole, three broad categories
of industries viz., consumer goods, intermediate goods and capital goods
industries has been selected in particular for the empirical analysis. By utilising
the OLS technique, the cross-section analysis for the year 1995-96 has been
made. Our results indicate the there is great potential for employment in the
intermediate and capital goods industries provided there are no factor price
distortions in the economy.
