Assessing the Information and Communication Technology (ICT) Sector's Productivity in Pakistan: Input-Output Analysis

Abstract

Using input-output (IO) analysis, this study attempted to examine the productivity of information and communication technology (ICT) sector in developing countries, with a particular focus on Pakistan. The effects of ICT on national economies have been thoroughly studied, however most studies have focused on industrialized economies. Using estimates of Multi-Factor Productivity (MFP), this study examined the economic impact of ICT sector in Pakistan from 2000 to 2020. Leveraging Input-Output Tables sourced from the Asian Development Bank (ADB), productivity measures were derived based on output and input multipliers. Estimates of productivity measures provided insight into the ICT sector. Findings reveal a minimal growth trajectory in the productivity indicators of the ICT sector in Pakistan, with some indicators indicating stagnation over the reviewed data period. These findings highlight the need to accelerate ICT industry advancement to benefit other areas of the Pakistani economy.