Assessing Efficiency in the Pharmaceutical Sector of Nigeria

Authors

Efayena O. Obukohwo, University of Nigeria, NsukkaFollow
Enoh H. Olele
Patricia N. Buzugbe

Keywords

Data Envelopment Analysis, Efficiency, Firm, Performance, Pharmaceuticals

Abstract

The study analyses, empirically, the efficiency of the Pharmaceutical sector in Nigeria. Employing a balanced panel of 20 pharmaceutical firms between 2012 and 2016, the paper uses a non-parametric technique (Data Envelopment Analysis) to analyze the firms’ efficiency under the constant returns to scale (CRS) and variable returns to scale (VRS) assumptions. The results obtained shows inefficiency in the pharmaceutical sector as it operates under a decreasing return to scale. This calls for an appropriate policy mix to stimulate the efficiency of the pharmaceutical sector in Nigeria by enhancing research and development (R&D) as ell as regulations within the sector.

Author Bio

Efayena O. Obukohwo is a staff of the Department of Economics, University of Nigeria, Nsukka; Enoh H. Olele is a staff of the Department of Economics Delta State University, Abraka, Delta State, Nigeria; and Patricia N. Buzugbe is a staff of the Department of General Studies, Delta State Polytechnic, Oghwashi-Uku, Nigeria.

Publication Title

CBN Journal of Applied Statistics

Issue

2

Volume

9

First Page

131

Last Page

148

Recommended Citation

Obukohwo, Efayena O.; Olele, Enoh H.; and Buzugbe, Patricia N. (2018) "Assessing Efficiency in the Pharmaceutical Sector of Nigeria," CBN Journal of Applied Statistics (JAS): Vol. 9: No. 2, Article 6.
Available at: https://dc.cbn.gov.ng/jas/vol9/iss2/6