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Efficiency of Large Scale Manufacturing in Pakistan: A Production Frontier Approach

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

Macroeconomics Working Papers from East Asian Bureau of Economic Research

Abstract: This paper examines the efficiency of the large scale manufacturing sector of Pakistan using the stochastic production frontier approach. A stochastic production frontier is estimated for two periods1995-96 and 2000-01for 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.

Keywords: Manufacturing Industries; technical efficiency; stochastic frontier analysis; Data Envelopment Analysis (search for similar items in EconPapers)
JEL-codes: D24 O14 P27 (search for similar items in EconPapers)
Date: 2007-01
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Working Paper: Efficiency of Large Scale Manufacturing in Pakistan: A Production Frontier Approach (2007) Downloads
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