Relative Efficiency of Decision Making Units Producing Both Desirable and Undesirable Outputs: A Case of Textile Processing Units in Pakistan.

Samina Khalil


This paper aims at measuring the relative efficiency of the
most polluting industry in terms of water pollution in Pakistan. The
textile processing is country‘s leading sub sector in textile
manufacturing with regard to value added production, export, employment,
and foreign exchange earnings. The data envelopment analysis technique
is employed to estimate the relative efficiency of decision making units
that uses several inputs to produce desirable and undesirable outputs.
The efficiency scores of all manufacturing units exhibit the
environmental consciousness of few producers is which may be due to
state regulations to control pollution but overall the situation is far
from satisfactory. Effective measures and instruments are still needed
to check the rising pollution levels in water resources discharged by
textile processing industry of the country. JEL classification: L67, Q53
Keywords: Data Envelopment Analysis (DEA), Decision Making Unit (DMU),
Relative Efficiency, Undesirable Output

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