Role of Information Technology on Employment Generation: A Case Study of Pakistan

The objective of this research paper is to analyze the role of information technology in employment generation in Pakistan. We used time series data for the period from 1996 to 2015. Employment generation was dependent variable while independent variables include: credit to private sector, Gross fixed capital information, FDI and money supply (M2). For analyzing data, we used statistical techniques like descriptive statistics, Correlation Metrix, Ordinary Least Square (OLS), t-statistics and F-statistics. The results show that credit to private sector and FDI have positive and significant relationship with employment generation while money supply and gross fixed capital formation have negative relationship. We suggest that the Government should encourage investment in IT sector and focus on the development of human capital to make the economy knowledgeable.