Economic reforms and technical efficiency: Firm level evidence from selected industries in India
AbstractThis paper analyses the performance of the manufacturing firms in some selected industries in terms of their technical efficiency against the background of the industrial and trade policy reforms introduced in India since 1991. A stochastic frontier production function and an associated inefficiency model are used to measure time varying firm specific technical efficiency. We define technical change as the shift of the best practice production frontier and technical inefficiency change as the movement within the best practice technology. The results show that all the industries considered registered a higher rate of technical progress in the post reform period along with a decline in the level of technical efficiency. The effect of change in the policy environment on technical efficiency varies among industries. The study also found that firms' involvement in the international trade through export and import of raw materials and technology has a positive effect on technical efficiency.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for Development Studies, Trivendrum, India in its series Centre for Development Studies, Trivendrum Working Papers with number 339.
Length: 47 pages
Date of creation: Oct 2002
Date of revision:
India; Manufacturing; Technical Efficiency; Economic Reforms;
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-11-23 (All new papers)
- NEP-COM-2003-11-23 (Industrial Competition)
- NEP-EFF-2003-11-23 (Efficiency & Productivity)
- NEP-INO-2003-11-23 (Innovation)
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.:
- Krishna, Pravin & Mitra, Devashish, 1998.
"Trade liberalization, market discipline and productivity growth: new evidence from India,"
Journal of Development Economics,
Elsevier, vol. 56(2), pages 447-462, August.
- Pravin Krishna & Devashish Mitra, . "Trade Liberalization, Market Discipline and Productivity Growth: New Evidence From India," Working Papers 96-8, Brown University, Department of Economics.
- Martin, John P, 1978. "X-inefficiency, Managerial Effort and Protection," Economica, London School of Economics and Political Science, vol. 45(179), pages 273-86, August.
- Elhanan Helpman & David T. Coe & Alexander W. Hoffmaister, 1994.
"North-South R&D Spillovers,"
IMF Working Papers
94/144, International Monetary Fund.
- Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander, 1995. "North-South R&D Spillovers," CEPR Discussion Papers 1133, C.E.P.R. Discussion Papers.
- David T. Coe & Elhanan Helpman & Alexander Hoffmaister, 1995. "North-South R&D Spillovers," NBER Working Papers 5048, National Bureau of Economic Research, Inc.
- Kodde, David A & Palm, Franz C, 1986.
"Wald Criteria for Jointly Testing Equality and Inequality Restriction s,"
Econometric Society, vol. 54(5), pages 1243-48, September.
- Kodde, David A. & Palm, Franz C., 1986. "Wald criteria for jointly testing equality and inequality restrictions," Open Access publications from Maastricht University urn:nbn:nl:ui:27-5750, Maastricht University.
- Grossman, Gene M. & Helpman, Elhanan, 1991.
"Trade, knowledge spillovers, and growth,"
European Economic Review,
Elsevier, vol. 35(2-3), pages 517-526, April.
- Horn, Henrik & Lang, Harald & Lundgren, Stefan, 1995.
"Managerial effort incentives, X-inefficiency and international trade,"
European Economic Review,
Elsevier, vol. 39(1), pages 117-138, January.
- Horn, H. & Lang, H. & Lundgren, S., 1991. "Managerial Effort Incentives, X-Inefficiency and International Trade," Papers 507, Stockholm - International Economic Studies.
- H. Schmitz & P. Knorringa, 2000. "Learning from Global Buyers," The Journal of Development Studies, Taylor and Francis Journals, vol. 37(2), pages 177-205.
- 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.
- Tybout, James R, 1992. "Linking Trade and Productivity: New Research Directions," World Bank Economic Review, World Bank Group, vol. 6(2), pages 189-211, May.
- Dani Rodrik, 1992. "The Limits of Trade Policy Reform in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 87-105, Winter.
- Deraniyagala, Sonali & Fine, Ben, 2001. "New Trade Theory versus Old Trade Policy: A Continuing Enigma," Cambridge Journal of Economics, Oxford University Press, vol. 25(6), pages 809-25, November.
- Egan, Mary Lou & Mody, Ashoka, 1992. "Buyer-seller links in export development," World Development, Elsevier, vol. 20(3), pages 321-334, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamprasad M. Pujar).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.