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

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

No 2007:27, PIDE-Working Papers from Pakistan Institute of Development Economics

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 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.

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)
Pages: 15 pages
Date: 2007
New Economics Papers: this item is included in nep-eff
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http://www.pide.org.pk/pdf/Working%20Paper/Working%20Paper-27.pdf First Version, 2007 (application/pdf)

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Working Paper: Efficiency of Large Scale Manufacturing in Pakistan: A Production Frontier Approach (2007) Downloads
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