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The changing role of technological factors in explaining efficiency in Indian firms

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  • Saon RayAuthor-Email: sray2908@yahoo.com

    (TERI University, India)

Abstract

The liberalization process undertaken by the Indian economy in recent times has thrown up many challenges. This paper investigates the factors explaining industrial efficiency in India and whether there has been a change in these factors since liberalization was ushered in 1991. This paper investigates the efficiency of firms during the period 1991 to 2001, using the concept of frontier production functions. Estimates of inefficiency have been obtained for 23 industry groups using the Capitaline Ole' database for three years 1991, 1995 and 2001. We find that the variables relating to external competition and technology flow from outside such as royalty payments, exports and import of raw materials have become significant in the year 2001 which were not so in the year 1991.

Suggested Citation

  • Saon RayAuthor-Email: sray2908@yahoo.com, 2006. "The changing role of technological factors in explaining efficiency in Indian firms," Journal of Developing Areas, Tennessee State University, College of Business, vol. 40(1), pages 127-140, September.
    • Handle: RePEc:jda:journl:vol.40:year:2006:issue1:pp:127-140
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    Citations

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    Cited by:

    1. Arpita Ghose & Chandrima Chakraborti, 2013. "The Relative Role of Imports and Exports in Explaining Productivity of Indian Bio-Pharmaceutical Firms: Evidence from Non Parametric Data Envelopment Analysis," Foreign Trade Review, , vol. 48(2), pages 165-201, May.
    2. Kashika Arora & Areej A. Siddiqui & Biswajit Nag, 2020. "Devevloping Linkages Between Export Guarantees And Technical Efficiency Of Indian Firms," Working Papers 2045, Indian Institute of Foreign Trade.
    3. Pradeep Kumar Keshari, 2011. "Efficiency Spillovers from FDI in the Indian Machinery Industry: A Firm Level Study Using Panel Data Models," Working Papers id:4195, eSocialSciences.

    More about this item

    Keywords

    Efficiency; Liberalization; Efficiency; India;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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