Essay example --

1. Problem Statement: Pharmaceutical companies are facing many challenges, amongst which the most important ones are the freeze on drug prices, cost inflation, fake and counterfeit medicines, and IPR violations of patented products. In Pakistan, the World Health Organization estimates that as much as 30 to 40 percent of medication on the market may be counterfeited. Pakistanis spend 77 percent of their household health budgets on medications, which puts at high risk the quality of healthcare being received. The organic chemical industry in Pakistan faces many challenges, which includes input availability and price, scale, power, and infrastructure are one of the main problems. The inherent cyclical trends observed in the industry exaggerate these challenges. Depending on the supply and demand-side linkages, the severity of challenges differs across firms. Pakistani pharmaceutical industry is one of the major industries and it has 70% of share to fulfill the demand of finished pharmaceutical products. These both industries also contribute in economic growth and development. This study is a preliminary in nature and it will also be a milestone for future research on this topic. The aim of this study is to investigate the efficiency and the determinants of efficiency of pharmaceutical and chemical firms in Pakistan. The efficiency of each firm will be evaluated using data envelopment analysis (DEA) approach. Objectives of Study: Following are key research questions that are needed to be explored/discussed †¢ To find the economic efficiency of Pharmaceutical and Chemical firms in Pakistan using non-parametric techniques. †¢ Conduct Tobit regression analysis for augmenting the analysis. †¢ To make recommendations on the basis of empirical... ... with which pre- and post-merger activities have been conducted in banks that were studied by DEA. Since DEA in its present form was first introduced in 1978, researchers in a number of fields have quickly recognized that it is an excellent and easily used methodology for modeling operational processes for performance evaluations. This has been accompanied by other developments. For instance, Zhu (2002) provides a number of DEA spreadsheet models that can be used in performance evaluation and benchmarking. DEA’s empirical orientation and the absence of a need for the numerous a priori assumptions that accompany other approaches (such as standard forms of statistical regression analysis) have resulted in its use in a number of studies involving efficient frontier estimation in the governmental and nonprofit sector, in the regulated sector, and in the private sector.