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

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 s...

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Veröffentlicht in:Pakistan development review 2007-04, Vol.46 (1), p.1-18
Hauptverfasser: Din, Musleh-ud, Ghani, Ejaz, Mahmood, Tariq
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Mahmood, Tariq
description 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.
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subjects Cost efficiency
Development
Development studies
Efficiency metrics
Industrial efficiency
Industrial products
Industrial sectors
Industry
Leather industry
Manufacturing
Manufacturing industries
Pakistan
Production efficiency
Production estimates
Stochastic processes
Tobacco industry
title Technical Efficiency of Pakistan's Manufacturing Sector: A Stochastic Frontier and Data Envelopment Analysis
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