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Substitution Elasticities in the Large- Scale Manufacturing Industries of Pakistan

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  • A. R. KEMAL

    (Pakistan Institute of Development Economics.)

Abstract

This paper examines substitution elasticities between capital and labour in the manufacturing sector of Pakistan. It is found that whereas the substitution possibilities between the capital intensive and labour intensive techniques of production are rather limited, the substitution possibilities between various activities do exist. It is also found that changes in capital-labour ratio have a significant influence on the substitution elasticity and as such CES estimates, in general, are biased.

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File URL: http://www.pide.org.pk/pdf/PDR/1981/Volume1/1-36.pdf
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Bibliographic Info

Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 20 (1981)
Issue (Month): 1 ()
Pages: 1-36

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Handle: RePEc:pid:journl:v:20:y:1981:i:1:p:1-36

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  1. A. R. Kemal, 1976. "Sectoral Growth Rates and Efficiency of Factor Use in Large-Scale Manufacturing Sector in West Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 15(4), pages 349-381.
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Cited by:
  1. Muhammad Ali Chaudhary & Eatzaz Ahmad & Abid A. Burki & Mushtaq A. Khan, 1999. "Industrial Sector Input Demand Responsiveness and Policy Interventions," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 1083-1100.
  2. Sohail Zafar & Eatzaz Ahmed, 2005. "Evidence on Allocative Efficiency and Elasticities of Substitution in the Manufacturing Sector of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(4), pages 795-803.
  3. Ashfaque H. Khan & Mohammad Rafiq, 1993. "Substitution among Labour, Capital, Imported Raw Materials, and Bank Credit in Pakistan's Manufacturing," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(4), pages 1259-1266.
  4. Rizwana Siddiqui & A. R. Kemal, 2006. "Remittances, Trade Liberalisation, and Poverty in Pakistan : The Role of Excluded Variables in Poverty Change Analysis," Development Economics Working Papers 22224, East Asian Bureau of Economic Research.
  5. Siddiqui, Rizwana & Kemal, A R, 2006. "Poverty-reducing or Poverty-inducing? A CGE-based Analysis of Foreign Capital Inflows in Pakistan," MPRA Paper 2283, University Library of Munich, Germany.
  6. Rizwana Siddiqui & Abdul Razzaq Kemal & Rehana Siddiqui & Ali Kemal, 2008. "Tariff Reduction, Fiscal Adjustment and Poverty in Pakistan: a CGE-Based Analysis," Working Papers MPIA 2008-17, PEP-MPIA.
  7. Shahid N. Zahid & Muhammad Akbar & Shabbar A. Jaffry, 1992. "Technical Change, Efficiency, and Capital-labour Substitution in Pakistan's Large-scale Manufacturing Sector," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 31(2), pages 165-188.
  8. Naqvi, Farzana, 1998. "A computable general equilibrium model of energy, economy and equity interactions in Pakistan," Energy Economics, Elsevier, vol. 20(4), pages 347-373, September.
  9. Eatzaz Ahmad & Muhammad Idrees, 1999. "The Time Profile of the Cost Structure in Pakistan’s Manufacturing Sector," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 1101-1116.

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