Examining the Inter-Sectoral Relationship, Productivity and Inclusive Growth of Pakistani and Indonesian Economies

Inclusive growth is progressing the diverse patterns, backgrounds, and sectors of an economy. As equitable economy has more potential for prosperity so reducing inequalities enhancing productivity workers in all a core concern emerging policies. Sectoral interlinkages patterns production are basis economic essential welfare outcomes. Therefore, study analyzes sectoral integration Pakistan Indonesian economies using dataset from 1980 to 2019. For this purpose, productive efficiency focused on three major i.e., services, manufacturing, agriculture sector. In study, we have used VAR model assess causal relationship among found that per capita value addition labor relatively higher manufacturing sector Indonesia. More than 36 percent employed but it slow rate only 0.97 Indonesia second-highest employment (i.e., 3.6 percent) lowest value-added. This indicates development high deprivations both particularly terms opportunities. The services categorized as with highest approximately 3.7 whereas also large share total 48.9 But value-added been lower industrial We positive association there negative between industry Pakistan. suggested focus skill programs aligned requirements provide incentives efficient allocation across get benefits broad base.