Are Our Export-Oriented Industries Technically More Efficient?

Tariq Mahmood, Ejaz Ghani and Musleh Din
Additional contact information
Tariq Mahmood: Pakistan Institute of Development Economics (PIDE), Islamabad.
Ejaz Ghani: Pakistan Institute of Development Economics (PIDE), Islamabad.
Musleh Din: Pakistan Institute of Development Economics (PIDE), Islamabad.

The Pakistan Development Review, 2015, vol. 54, issue 2, 97-121

Abstract: This paper makes a comparison of technical efficiency scores between groups of exporting and non-exporting industries. Using data from Census of Manufacturing Industries in Pakistan (2005-06), technical efficiency scores of 102 large scale manufacturing industries are estimated. Stochastic Frontier Analysis as well as Data Envelopment Analysis technique are used to estimate technical efficiency scores. In Stochastic Frontier Analysis Translog and Cobb-Douglass Production Functions are specified, whereas in Data Envelopment Analysis technique, efficiency scores are computed under the assumptions of Constant Returns to Scale as well as Variable Returns to Scale. Industries showing high technical efficiency include Tobacco Products, Refined Petroleum Products, Carpets and Rugs, and Meat and Meat Products. Industries showing low technical efficiency include Refractory Ceramic Products, Electricity Distribution and Control Apparatus, Fish and Fish Products, Basic Precious Metals and Aluminum and its Products. Comparison of mean efficiency scores between exporting and non-exporting industries does not indicate any significant difference between efficiency scores across types of industries.

Keywords: Manufacturing Industries; Technical Efficiency; Stochastic Frontier Analysis; Data Envelopment Analysis; International Trade (search for similar items in EconPapers)
JEL-codes: D24 F14 L6 O14 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.pide.org.pk/pdf/PDR/2015/Volume2/97-121.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pid:journl:v:54:y:2015:i:2:p:97-121

Access Statistics for this article

More articles in The Pakistan Development Review from Pakistan Institute of Development Economics Contact information at EDIRC.
Bibliographic data for series maintained by Khurram Iqbal ().