Econometric Analysis Of Efficiency In The Indian Manufacturing Sector
AbstractPerformance in the manufacturing sector, in relation to productivity growth, scale efficiency and technical efficiency in India is dichotomous in nature, depending on whether the firm in question functions in the formal or informal sector. The main differences between these two sectors and the changes over a decade are observed and analyzed, using aggregated data for the entire manufacturing sector in India. Using stochastic frontier approach, and therein the maximum likelihood models, efficiency in the two sectors is compared and verified against factors affecting the levels of efficiency obtained for each major industry category. The results are analyzed against realities on ground-level from a socio-economic perspective.
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Bibliographic InfoArticle provided by Institute for Economic Forecasting in its journal Romanian Journal for Economic Forecasting.
Volume (Year): (2010)
Issue (Month): 1 (March)
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manufacturing; formal; informal; organized; unorganized; returns to scale; technical efficiency; cross-sectional data; maximum likelihood estimation; efficiency gap; India; industries;
Find related papers by JEL classification:
- C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- E26 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
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