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Some of the factors which determine the efficient use of scarce resources in industrial development are: the size of firms in the industry [1; 10 and 22], the type of technology - 'sophisticated' or 'traditional' - used in the production process [9; 18; 19 and 21] , availability of skilled manpower [7] , depth of the entrepreneurial talent [2; 6 and IS], and judicious policies regarding industrial location [20]. In the discussion that follows we attempt to quantify the impact of these factors on firm efficiency, using evidence from Pakistan.

Issues in the Economics of Industrialization in Developing Countries: A Case Study from Pakistan's Light Engineering Sector