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Effects of Input Composition on Technical Efficiencies of Textile Industries in Pakistan

Tariq Mahmood
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Tariq Mahmood: Pakistan Institute of Development Economics, Islamabad

The Pakistan Development Review, 2012, vol. 51, issue 2, 117-130

Abstract: This paper studies the technical efficiencies of the textile manufacturing industries in Pakistan using 5-digit level industry data. Technical efficiencies are computed by the Data Envelopment Analysis technique assuming constant as well as variable returns to scale. The efficiency scores thus obtained are analysed by the TOBIT regression technique to determine how input composition influences these efficiency scores. It is found that imported raw material and machinery exercises a positive effect, whereas non-industrial costs affect technical efficiencies in a negative way. Electricity does not play its due role in affecting technical efficiencies.

Keywords: Technical Efficiency; Data Envelopment Analysis; TOBIT Analysis; Manufacturing Industries (search for similar items in EconPapers)
JEL-codes: C24 D24 L6 O14 (search for similar items in EconPapers)
Date: 2012
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