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An Analysis of Production Relations in the Large-scale Textile Manufacturing Sector of Pakistan


Author Info

  • Sohail J. Malik

    (International Food Policy Research Institute, Washington, D.C.)

  • Mohammad Mushtaq

    (Pakistan Institute of Development Economics, Islamabad.)

  • Hina Nazli

    (Pakistan Institute of Development Economics, Islamabad.)


This paper attempts to determine econometrically the underlying production relations for the large-scale textile manufacturing sector of Pakistan, based on data available from the six most recent censuses of large-scale manufacturing industries. The coyariance model is used for pooling the provincial data. Testing for alternative forms reveals that the CES production function with constant-returns-to-scale most adequately explains the underlying production structure. The estimates of the elasticity of substitution are significantly different from zero in all cases, implying significant and efficient employment generation possibilities.

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Bibliographic Info

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

Volume (Year): 28 (1989)
Issue (Month): 1 ()
Pages: 27-42

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Handle: RePEc:pid:journl:v:28:y:1989:i:1:p:27-42

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Cited by:
  1. 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.
  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. Siddiqui, Rizwana & Kemal, A.R., 2002. "Remittances, trade liberalisation, and poverty in Pakistan: The role of excluded variables in poverty change analysis," MPRA Paper 4228, University Library of Munich, Germany, revised Oct 2006.
  4. Rizwana Siddiqui & A. R. Kemal, 2006. "Poverty-reducing or Poverty-inducing? A CGE-based Analysis of Foreign Capital Inflows in Pakistan," PIDE-Working Papers 2006:2, Pakistan Institute of Development Economics.
  5. Zafar, Sohail & Ahmed, Vaqar, 2009. "External scale economies in manufacturing sector of Pakistan: a comparison of large scale manufacturing sector of Sindh and Punjab," MPRA Paper 17665, University Library of Munich, Germany.
  6. 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.


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