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Technical Efficiency in Indian Modern Small Scale Sector: An Application of Frontier Production function

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  • T. A. Bhavani

    (Institute of Economic Growth)

Abstract

The present study attempts to investigate the efficiency of four 4-digit level industries of metal products group belonging to the modern small scale sector. Based on firmlevel data, we attempt to measure the technical efficiency of the selected industries using translog production frontier with three inputs viz., capital, labour and materials. In order to see the sensitivity of efficiency estimates to the distribution selected in the frontier model, we consider three widely used distributions namely, the Gamma, the Exponential and the Half-Normal. The results show high efficiency levels for the four selected industries.

Suggested Citation

  • T. A. Bhavani, 1991. "Technical Efficiency in Indian Modern Small Scale Sector: An Application of Frontier Production function," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 26(2), pages 149-166, July.
  • Handle: RePEc:dse:indecr:v:26:y:1991:i:2:p:149-166
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    References listed on IDEAS

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    Cited by:

    1. James R. Tybout, 2000. "Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?," Journal of Economic Literature, American Economic Association, pages 11-44.
    2. Anup Kumar Bhandari & Pradip Maiti, 2007. "Efficiency of Indian Manufacturing Firms: Textile Industry as a Case Study," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 6(1), pages 71-88, April.
    3. Anup Kumar Bhandari, 2010. "Global Crisis, Environment Volatility and Expansion of Tthe Indian Leather Industry," Working Papers id:2500, eSocialSciences.
    4. repec:eee:quaeco:v:65:y:2017:i:c:p:16-24 is not listed on IDEAS
    5. Karamat Ali & Abdul Hamid, 1996. "Technical Change, Technical Efficiency, and Their Impact on Input Demand in the Agricultural and Manufacturing Sectors of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 35(3), pages 215-228.
    6. Anup Bhandari & Pradip Maiti, 2012. "Efficiency of the Indian leather firms: some results obtained using the two conventional methods," Journal of Productivity Analysis, Springer, vol. 37(1), pages 73-93, February.

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