Technical and Scale Efficiency of Automobile Firms in Pakistan

Haroon Hussain, Rohani Md-Rus, Hamdan Amer Ali Al-Jaifi

Abstract


The current study aimed at exploring the efficiency level of automobile firms in Pakistan. For this purpose, the current study has collected the data of 18 automobile and automobile parts firms from the year 2011 to the year 2015. To analyse the date, the current study has used the data envelopment analysis. Three models were used to calculate the firm efficiency such as constant return to scale, variable return to scale and scale efficiency. The results of the study have revealed that most of the automobile firms are not efficient during these years. In addition, the results were consistent based on the three efficiency models. 


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