Structural Transformation and Political Economy: A New Approach to Inclusive Growth

The "Jobless growth" of Pakistan's economy and its acquaintances with frequent changes in different governments in power (both democratic and military regime) and its influence on economic growth persuades to conduct a qualitative analysis of the structural transformation on the disaggregated level to evaluate the if it has any connection or impact on different sectors of the economy or not. This study's primary aim is to (a) consider how sectoral transformation has pretentious the economic growth and employment, and relationships thus thereof, and (b) to examine how these dynamics have influenced the generation of sustainable employment in the economy. For that purpose, the study took under consideration the sectoral transformation. For that purpose, the study employs the sectoral employment Elasticity approach. Our evaluation findings show that the economy performs better in military regimes than a democratic period. The reason could be anything, but our concern here is to identify the elasticities of employment in Pakistan's various political powers.