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A Non-Radial Measure of Efficiency in Indian Textile Industry: An Analysis of Unit-Level Data

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Author Info
Subhash C. Ray (University of Connecticut)
Chiranjib Neogi (Indian Statistical Institute, Calcutta)
Abstract

In this paper we apply Data Envelopment Analysis (DEA) to firm level data from various years of Annual Survey of Industry to obtain Pareto-Koopmans measures of technical efficiency in the Indian textile garments industry. The overall efficiency measure is multiplicatively decomposed into an input- and an output-oriented Russell type non-radial measure. For the second stage regression of DEA efficiency scores in terms of age, ownership, regional location, and other characteristics of a firm, we perform a Box-Cox transformation of the one-sided dependent variable to avoid using a Tobit regression in a context where there is no obvious censoring of the data.

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File URL: http://www.econ.uconn.edu/working/2007-38.pdf
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Publisher Info
Paper provided by University of Connecticut, Department of Economics in its series Working papers with number 2007-38.

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Length: 29 pages
Date of creation: 2007
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Handle: RePEc:uct:uconnp:2007-38

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Related research
Keywords: DEA Pareto-Koopmans Efficiency Box-Cox Transformation

Find related papers by JEL classification:
L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables
C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Optimization Techniques; Programming Models; Dynamic Analysis

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