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Estimating Total Factor Productivity and Its Components: Evidence from Major Manufacturing Industries of Pakistan

  • Abdul Raheman

    (University Institute of Managemenet Sciences, PMAS-Arid Agriculture University, Rawalpindi.)

  • Talat Afza

    (Department of Management Sciences, COMSATS Institute of Information Technology, Lahore.)

  • Abdul Qayyum

    (Pakistan Institute of Development Economics, Islamabad.)

  • Mahmood Ahmed Bodla

    (COMSATS Institute of Information Technology, Sahiwal.)

This paper estimates the trend in total factor productivity growth for eleven major manufacturing sub-sectors/industries listed on Karachi Stock Exchange. 1998 to 2007 Malmquist total factor productivity growth indices have been calculated using nonparametric Data Envelopment Analysis which also shows TFP growth sources including efficiency change and technical change. The results of this study are showing a mixed trend for all manufacturing sub-sectors/industries in terms of TFP, technical efficiency change and technological change. Cement and Oil and Gas marketing sectors depict a relatively stable position. Most of the manufacturing industries have gained, in terms of technical efficiency but the technical change is putting a negative affect on the productivity growth except for a few industries.

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File URL: http://www.pide.org.pk/pdf/PDR/2008/Volume4/677-694.pdf
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Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 47 (2008)
Issue (Month): 4 ()
Pages: 677-694

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Handle: RePEc:pid:journl:v:47:y:2008:i:4:p:677-694
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