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

Musleh-ud Din (), Ejaz Ghani () and Tariq Mahmood

The Pakistan Development Review, 2007, vol. 46, issue 1, 1-18

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.

Keywords: Manufacturing Industries; Technical Efficiency; Stochastic Frontier Analysis; Data Envelopment Analysis (search for similar items in EconPapers)
JEL-codes: D24 L6 O14 P27 (search for similar items in EconPapers)
Date: 2007
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