Efficiency and productivity of the cement industry: Pakistani experience of deregulation and privatisation

Yaseen Ghulam; Shabbar Jaffry

doi:10.1016/j.omega.2015.01.013

Efficiency and productivity of the cement industry: Pakistani experience of deregulation and privatisation

Centre of Operational Research and Decision Analysis

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Abstract

This study evaluates the impact of privatisation on efficiency and productivity of the Pakistani cement industry. To address some of the serious concerns about the problem of dimension and outlier, we use a newly developed unconditional hyperbolic α-quantile estimator of Wheelock and Wilson to estimate efficiency (Wheelock D. C., and Wilson P. W., 2008, Non-parametric, unconditional quantile estimation for efficiency analysis with an application to Federal Reserve check processing operations, Journal of Econometrics, 209-225). Subsequently, we use these efficiency estimates to calculate the Malmquist productivity growth and its components. The results show that deregulation and privatisation had the desired positive effect on productivity growth due to technological progress. We conclude that this improvement in the post reform period could be linked to political stability, improved economic conditions and a competitive industry.

Original language	English
Pages (from-to)	101-114
Journal	Omega
Volume	54
Early online date	3 Feb 2015
DOIs	https://doi.org/10.1016/j.omega.2015.01.013
Publication status	Published - Jul 2015

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth
SDG 9 Industry, Innovation, and Infrastructure

Keywords

efficiency
Malmquist productivity
Pakistani cement industry
reform
privatisation
hyperbolic α-quantile estimator
technological progress

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10.1016/j.omega.2015.01.013

GHULAM_2015_cright_O_Efficiency_and_productivity_of_the_cement_industry
NOTICE: this is the author’s version of a work that was accepted for publication in OMEGA International Journal of Management Science. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in OMEGA International Journal of Management Science, 54, (2015), DOI: 10.1016/j.omega.2015.01.013
Accepted author manuscript (Post-print), 1.01 MB

Cite this

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title = "Efficiency and productivity of the cement industry: Pakistani experience of deregulation and privatisation",

abstract = "This study evaluates the impact of privatisation on efficiency and productivity of the Pakistani cement industry. To address some of the serious concerns about the problem of dimension and outlier, we use a newly developed unconditional hyperbolic α-quantile estimator of Wheelock and Wilson to estimate efficiency (Wheelock D. C., and Wilson P. W., 2008, Non-parametric, unconditional quantile estimation for efficiency analysis with an application to Federal Reserve check processing operations, Journal of Econometrics, 209-225). Subsequently, we use these efficiency estimates to calculate the Malmquist productivity growth and its components. The results show that deregulation and privatisation had the desired positive effect on productivity growth due to technological progress. We conclude that this improvement in the post reform period could be linked to political stability, improved economic conditions and a competitive industry.",

keywords = "efficiency, Malmquist productivity, Pakistani cement industry, reform, privatisation, hyperbolic α-quantile estimator, technological progress",

author = "Yaseen Ghulam and Shabbar Jaffry",

note = "NOTICE: this is the author{\textquoteright}s version of a work that was accepted for publication in OMEGA International Journal of Management Science. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in OMEGA International Journal of Management Science, 54, (2015), DOI: 10.1016/j.omega.2015.01.013",

year = "2015",

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doi = "10.1016/j.omega.2015.01.013",

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T1 - Efficiency and productivity of the cement industry

T2 - Pakistani experience of deregulation and privatisation

AU - Ghulam, Yaseen

AU - Jaffry, Shabbar

N1 - NOTICE: this is the author’s version of a work that was accepted for publication in OMEGA International Journal of Management Science. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in OMEGA International Journal of Management Science, 54, (2015), DOI: 10.1016/j.omega.2015.01.013

PY - 2015/7

Y1 - 2015/7

N2 - This study evaluates the impact of privatisation on efficiency and productivity of the Pakistani cement industry. To address some of the serious concerns about the problem of dimension and outlier, we use a newly developed unconditional hyperbolic α-quantile estimator of Wheelock and Wilson to estimate efficiency (Wheelock D. C., and Wilson P. W., 2008, Non-parametric, unconditional quantile estimation for efficiency analysis with an application to Federal Reserve check processing operations, Journal of Econometrics, 209-225). Subsequently, we use these efficiency estimates to calculate the Malmquist productivity growth and its components. The results show that deregulation and privatisation had the desired positive effect on productivity growth due to technological progress. We conclude that this improvement in the post reform period could be linked to political stability, improved economic conditions and a competitive industry.

AB - This study evaluates the impact of privatisation on efficiency and productivity of the Pakistani cement industry. To address some of the serious concerns about the problem of dimension and outlier, we use a newly developed unconditional hyperbolic α-quantile estimator of Wheelock and Wilson to estimate efficiency (Wheelock D. C., and Wilson P. W., 2008, Non-parametric, unconditional quantile estimation for efficiency analysis with an application to Federal Reserve check processing operations, Journal of Econometrics, 209-225). Subsequently, we use these efficiency estimates to calculate the Malmquist productivity growth and its components. The results show that deregulation and privatisation had the desired positive effect on productivity growth due to technological progress. We conclude that this improvement in the post reform period could be linked to political stability, improved economic conditions and a competitive industry.

KW - efficiency

KW - Malmquist productivity

KW - Pakistani cement industry

KW - reform

KW - privatisation

KW - hyperbolic α-quantile estimator

KW - technological progress

U2 - 10.1016/j.omega.2015.01.013

DO - 10.1016/j.omega.2015.01.013

M3 - Article

SN - 0305-0483

VL - 54

SP - 101

EP - 114

JO - Omega

JF - Omega

ER -

Efficiency and productivity of the cement industry: Pakistani experience of deregulation and privatisation

Abstract

UN SDGs

Keywords

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