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Technology Expenditures, Factor Intensity, and Efficiency in Indian Manufacturing

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  • Ferrantino, Michael J
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    Abstract

    The effects of expenditure on R&D and purchase of technology on costs in Indian manufacturing is investigated using firm-level data. Expenditures for R&D, royalties, and technical fees are treated as potentially inducing both Hicks-neutral efficiency shifts and substitution between capital and labor in an indirect cos t function framework. The effects of technology expenditure are found to vary by industry, by type of expenditure, and by domestic or foreign origin of seller. Technology expenditures associated with higher levels of Hicks-neutral efficiency are generally also associated wit h higher capital-labor ratios. Copyright 1992 by MIT Press.

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    Bibliographic Info

    Article provided by MIT Press in its journal Review of Economics & Statistics.

    Volume (Year): 74 (1992)
    Issue (Month): 4 (November)
    Pages: 689-700

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    Handle: RePEc:tpr:restat:v:74:y:1992:i:4:p:689-700

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    Web page: http://mitpress.mit.edu/journals/

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    Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

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    Cited by:
    1. Vishwasrao, Sharmila & Bosshardt, William, 2001. "Foreign ownership and technology adoption: evidence from Indian firms," Journal of Development Economics, Elsevier, vol. 65(2), pages 367-387, August.
    2. Hasan, Rana, 2002. "The impact of imported and domestic technologies on the productivity of firms: panel data evidence from Indian manufacturing firms," Journal of Development Economics, Elsevier, vol. 69(1), pages 23-49, October.
    3. M. Parameswaran, 2007. "International trade, R & D spillovers and productivity: Evidence from Indian manufacturing industry," Centre for Development Studies, Trivendrum Working Papers 385, Centre for Development Studies, Trivendrum, India.
    4. Patibandla, Murali, 1998. "Structure, organizational behavior, and technical efficiency: The case of an Indian industry," Journal of Economic Behavior & Organization, Elsevier, vol. 34(3), pages 419-434, March.
    5. Sen, Neelanjan, 2014. "Technology Transfer and its effect on Innovation," MPRA Paper 55542, University Library of Munich, Germany.
    6. Kathuria, Vinish, 1998. "Foreign Firms and Technology Transfer Knowledge Spillovers to Indian Manufacturing Firms," UNU-INTECH Discussion Paper Series 04, United Nations University - INTECH.

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