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INTRA-SECTORAL PRODUCTIVITY DIFFERENTIAL: The Large Scale versus the Small Scale Sector in Pakistan

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  • Shahida Wizarat
  • Naeemuddin Zaffar

Abstract

We have tried to identify factors responsible for the differential in productivity between the small-scale and the large-scale manufacturing industries in Pakistan. Using a labour productivity equation derived from a Cobb-Douglas production function, we find the differentials on account of capital intensity, wages and vertical integration to be important determinants of the differential in productivity between the two sectors, while the differential in size does not emerge as an important factor.

Suggested Citation

  • Shahida Wizarat & Naeemuddin Zaffar, 1990. "INTRA-SECTORAL PRODUCTIVITY DIFFERENTIAL: The Large Scale versus the Small Scale Sector in Pakistan," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 9(2), pages 147-164.
    • Handle: RePEc:pje:journl:article1990winii
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