Abstract
Textile industry is the largest industry of Pakistan and like other industries it is facing not only high and
escalating cost of electricity and gas but also lack of market access. This study has computed production
uncertainty (PU) due to technical inefficiency (TIE) of textile exporting and manufacturing (TEM) firms in
Pakistan. We has obtained data from annual reports of 98 companies for the year 2017-18. We has applied
stochastic production frontier approach with half normal distribution of ui. PU with confidence bounds had
been computed. Inefficiencies (ui/εi) were statistically significant at 5 % level of significance. The mean PU
was 0.0045. The computed scores of PU of TEM firms in Pakistan during 2017-18 showed that maximum
numbers of firms had their PU score low and close to minimum PU score and very few firms had high PU
score and close to maximum PU score.
INAYATULLAH KHAN, Prof. Dr. MOHAMMAD AFZAL. (2020) Instability of Textile Production in Pakistan: Stochastic Frontier Model Approach, International Review of Management and Business Research, Volume 9, Issue 4 .
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