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Technical Efficiency of Pakistan s Manufacturing Sector: A Stochastic Frontier and Data Envelopment Analysis

Author

Listed:
  • Musleh-ud Din

    (Pakistan Institute of Development Economics, Islamabad)

  • Ejaz Ghani

    (Pakistan Institute of Development Economics, Islamabad)

  • Tariq Mahmood

    (Pakistan Institute of Development Economics, Islamabad)

Abstract

This paper examines the efficiency of the large-scale manufacturing sector of Pakistan using parametric as well as non-parametric frontier techniques. Production frontiers are estimated for two periods-1995-96 and 2000-01-for 101 industries at the 5-digit PSIC. The results show that there has been some improvement in the efficiency of the large-scale manufacturing sector, though the magnitude of improvement remains small. The results are mixed at the disaggregated level: whereas a majority of industrial groups have gained in terms of technical efficiency, some industries have shown deterioration in their efficiency levels. The results from both the approaches are consistent, and in line with similar studies.

Suggested Citation

  • Musleh-ud Din & Ejaz Ghani & Tariq Mahmood, 2007. "Technical Efficiency of Pakistan s Manufacturing Sector: A Stochastic Frontier and Data Envelopment Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(1), pages 1-18.
    • Handle: RePEc:pid:journl:v:46:y:2007:i:1:p:1-18
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    References listed on IDEAS

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    Cited by:

    1. Matthew McCartney, 2016. "Costs, Capabilities, Conflict and Cash: The Problem of Technology and Sustainable Economic Growth in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(Special E), pages 65-98, September.
    2. Agostino, Mariarosaria & Nifo, Annamaria & Trivieri, Francesco & Vecchione, Gaetano, 2016. "Total factor productivity heterogeneity: channelling the impact of institutions," MPRA Paper 72759, University Library of Munich, Germany.
    3. Ipatova, Irina, 2015. "The dynamics of total factor productivity and its components: Russian plastic production," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 21-40.
    4. Md. Abul Kalam Azad & Susila Munisamy & Kwek Kian Teng & Muzalwana Binti Abdul Talib & Paolo Saona, 2018. "Productivity Changes of Pharmaceutical Industry in Bangladesh: Does Process Patent Matter?," Global Business Review, International Management Institute, vol. 19(4), pages 1013-1025, August.
    5. Lamees Al-Durgham & Mohammad Adeinat, 2021. "Assessing the Relative Efficiency for Listed Manufacturing Firms in Jordan Using Data Envelopment Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 11(1), pages 135-139.
    6. Tariq Mahmood & Ejaz Ghani & Musleh Ud Din, 2015. "Are Our Export-Oriented Industries Technically More Efficient?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(2), pages 97-121.
    7. Ipatova, Irina & Peresetsky, Аnatoly, 2013. "Technical efficiency of Russian plastic and rubber production firms," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 32(4), pages 71-92.

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    More about this item

    Keywords

    Manufacturing Industries; Technical Efficiency; Stochastic Frontier Analysis; Data Envelopment Analysis;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects

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