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Who extracts minerals more efficiently—Public or private firms? A study of Indian mining industry

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  • Das, Amarendra

Abstract

Most of the developing countries across the world have opened up their mining industry for private sector participation since late 1980s with a view to increase the overall efficiency of the mineral extraction. But are the private mining firms really efficient than the public sector firms? In such a context this paper compares the extraction efficiency of public and private mining firms in India by assessing their Total Factor Productivity (TFP). The study reveals that TFP levels of private firms are significantly higher than that of public firms in metallic, non-metallic and coal mining sectors. TFP levels of private firms in non-metallic sector are almost double that of public firms. Similarly, private firms in metallic and coal mining industry are one and half times more productive than public firms. In such a context, we can suggest that private participation in the mining industry may boost the overall productivity of the sector.

Suggested Citation

  • Das, Amarendra, 2012. "Who extracts minerals more efficiently—Public or private firms? A study of Indian mining industry," Journal of Policy Modeling, Elsevier, vol. 34(5), pages 755-766.
  • Handle: RePEc:eee:jpolmo:v:34:y:2012:i:5:p:755-766
    DOI: 10.1016/j.jpolmod.2012.02.005
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    More about this item

    Keywords

    Firm ownership; Total Factor Productivity; Mining industry;

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels

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