Output and Substitution Elasticities in Pakistan’s Industrial Sectors: Panel Data Analysis

This study performed a panel data analysis of Pakistan’s nine major sub-industries in the years 1980–2019. The primary objective was to conduct disaggregate substitution elasticity inputs different industries, including textile, mining and currying, manufacturing, fuel extraction, electricity, gas, water supply, using translog production function. used function estimate output elasticities for each sub-industry. Based on results elasticities, concluded that there were negative oil, labor, except capital, which had positive elasticity, causing increasing returns scale industries. greater than one value positive, showing costly energy can should be replaced with cheaper these For instance, electricity is Pakistan.