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Effects of Input Composition on Technical Efficiencies of Textile Industries in Pakistan

Author

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  • Tariq Mahmood

    (Pakistan Institute of Development Economics, Islamabad)

Abstract

This paper studies the technical efficiencies of the textile manufacturing industries in Pakistan using 5-digit level industry data. Technical efficiencies are computed by the Data Envelopment Analysis technique assuming constant as well as variable returns to scale. The efficiency scores thus obtained are analysed by the TOBIT regression technique to determine how input composition influences these efficiency scores. It is found that imported raw material and machinery exercises a positive effect, whereas non-industrial costs affect technical efficiencies in a negative way. Electricity does not play its due role in affecting technical efficiencies.

Suggested Citation

  • Tariq Mahmood, 2012. "Effects of Input Composition on Technical Efficiencies of Textile Industries in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 51(2), pages 117-130.
  • Handle: RePEc:pid:journl:v:51:y:2012:i:2:p:117-130
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    File URL: http://www.pide.org.pk/pdf/PDR/2012/Volume2/117-130.pdf
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    Cited by:

    1. Ahmed, Gulzar & Arshad Khan, Muhammad & Afzal, Muhammad, 2015. "Trade Liberalization and Industrial Productivity: Evidence from Pakistan," MPRA Paper 70744, University Library of Munich, Germany, revised 15 Mar 2016.

    More about this item

    Keywords

    Technical Efficiency; Data Envelopment Analysis; TOBIT Analysis; Manufacturing Industries;

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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