Abstract
This study evaluates the technical efficiency of listed spinning firms in Pakistan Stock Exchange (PSX). For this purpose, Data
Envelopment Analysis technique under Variable Return to Scale (VRS) assumption has been applied. The balanced panel data of
55 firms has been collected for the period 2011 to 2016. The research findings reveal that out of 55 firms only 1 firm can attain
efficiency score of 1 throughout the 6 years of the analysis period. These empirical results indicate that available resources are not
being properly utilized and there is a considerable scope to improve efficiency of the Pakistani spinning industry. Therefore,
managements of these firms need to investigate their present scenario and make concrete efforts for bringing efficiency to the
optimum level for better performance. It is also recommended that the government may introduce a special package in the form of
subsidy for this industry. This will not only enable spinning industry to compete globally but will also be helpful to retrieve its lost
market share.
Alamdar Hussain Khan, Sadia Farooq. (2019) Evaluating Technical Efficiency of Textile Firms in Pakistan: An Application of Data Envelopment Analysis (DEA) Approach, Paradigms , Vol 13, Issue 2.
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