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According to Fried et al (2008), financial variables are influenced by variations in prices of input and output and also by the productivity and efficiency. This study will also measure the performance of textile sector through technical efficiency. Technical efficiency refers the ability of any firm to generate maximum output within given level of input and technology (Coelli et al., 2005). It is considered in relative terms as production abilities of firm are compared with the best practices of input-output combinations (Alauddin et al., 1993). Manufacturing sector is the 3rd largest sector of Pakistan and contribute in GDP at large extent (Credit Rating Company Limited, 2010).There are more than 13 sub sectors that are collectively known as large manufacturing sector and among these sectors textile is one of the largest subsector. According to the Federal Bureau of Statistics (2010), the growth rate of textile sector was -0.70 % in 2009 and -1.78% in 2010. The ruthless conditions of textile sector require to analyse the current condition of this sector and also to take necessary steps for its betterment. Textile sector is the back bone of Pakistan’s Economy. Pakistan’s textile sector has been the 8th largest exporter of textile products and 4th largest manufacturer of cotton in Asia. Its contribution towards GDP is 9.5% and providing employment to more than 15 million workforce of Pakistan. This sector significantly contributes in real GDP that’s why it is necessary to analyse its performance and efficiency.
MUHAMMAD USMAN, ALI HASSAN, FAIQ MAHMOOD, HUMERA SHAHID. (2014) Performance of Textile Sector of Pakistan: Application of Data Envelopment Analysis Approach, International Review of Management and Business Research, Volume 3, Issue 3.
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