Relative Efficiency of Decision Making Units Producing Both Desirable and Undesirable Outputs: A Case of Textile Processing Units in Pakistan

Samina Khalil
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Samina Khalil: Applied Economics Research Centre, University of Karachi, Karachi

The Pakistan Development Review, 2011, vol. 50, issue 4, 685-698

Abstract: This paper aims at measuring the relative efficiency of the most polluting industry in terms of water pollution in Pakistan. The textile processing is country‘s leading sub sector in textile manufacturing with regard to value added production, export, employment, and foreign exchange earnings. The data envelopment analysis technique is employed to estimate the relative efficiency of decision making units that uses several inputs to produce desirable and undesirable outputs. The efficiency scores of all manufacturing units exhibit the environmental consciousness of few producers is which may be due to state regulations to control pollution but overall the situation is far from satisfactory. Effective measures and instruments are still needed to check the rising pollution levels in water resources discharged by textile processing industry of the country.

Keywords: Data Envelopment Analysis (DEA); Decision Making Unit (DMU); Relative Efficiency; Undesirable Output (search for similar items in EconPapers)
JEL-codes: L67 Q53 (search for similar items in EconPapers)
Date: 2011
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