Significance and Role of Industrial Inputs in Productivity of Large-scale Manufacturing in Karachi: A Correlation Analysis

Abstract

In an industrial process, productivity is a basic concern. A combination of production input, namely employment, labour cost, energy and raw material cost, result in value addition expressed as value- added. The effective role of each input in the manufacturing process can be assessed through the influence of variables involved. Pearson's correlation coefficients show various degrees of effects through interrelationships of variables and bring out the outstanding or relatively more important role of one or more variables (inputs) in specific combinations in the manufacturing process. The paper in hand analyses the interrelationship of structuring variables in the major groups of manufacturing in Karachi using Pearson's correlation measurement techniques. The role of the variables has been assessed through sets of ten correlations in each of the six major industrial categories. The results of the analyses show the leading or the dominant contribution of the variables towards value addition and productivity. In the case of the textile industry, strong correlations are indicated between Value Added (VA) and 'Other Cost' (OC) and Average Daily Employment (ADE) and Employment Cost (EC) and also VA and ADE. For chemical and chemical products strong correlation exist between VA and OC, OC and IC (industrial cost) and ADE and EC. In respect of the wearing apparel category, a strong correlation occur between OC and IC, VA and OC, ADE and EC. Basic metal industry shows strong correlation in all ten sets of relationships, thus every variable exercising an equal influence. The food and beverage group has only two strong correlations that are VA and OC, IC, and OC. In the case of motor vehicles and trailers, strong relationships are indicated by all sets of correlation ship.