Measuring production efficiency of small firms in Pakistan

Document Type

Article

Publication Date

1-1-1998

Abstract

This paper examines the efficiency of small manufacturing firms in Gujranwala, Pakistan. In the first step of the study, we construct measures of technical and scale efficiency for a sample of 153 small manufacturing firms from nine industries. The second step includes Tobit regressions of these measures on attributes of the firm and entrepreneur to examine sources of firm efficiency. Results reveal that newer firms, firms run by entrepreneurs with at least primary education, and firms engaging in production subcontracting appear more efficient and that many firms operate at less than the optimal scale. © 1998 Elsevier Science Ltd. All rights reserved.

Publication Source (Journal or Book title)

World Development

First Page

155

Last Page

169

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