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Efficiency of Indian Manufacturing Firms: Textile Industry as a Case Study

Author

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  • Anup Kumar Bhandari

    (Economic Research Unit, Indian Statistical Institute, India)

  • Pradip Maiti

    (Economic Research Unit, Indian Statistical Institute, India)

Abstract

Translog stochastic frontier production functions are fit to firm-level cross-sectional data on India's textile firms for each of five selected years to estimate technical efficiency (TE) of firms. We find that average TE varies between 68 to 84% across these years and that individual TEs vary with firm-specific characteristics such as size and age. Further, public sector firms are found to be relatively less efficient.

Suggested Citation

  • 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.
  • Handle: RePEc:ijb:journl:v:6:y:2007:i:1:p:71-88
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    References listed on IDEAS

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    1. repec:spr:manint:v:52:y:2012:i:4:d:10.1007_s11575-011-0127-7 is not listed on IDEAS
    2. Coll Serrano, V. & Blasco Blasco, O.Mª., 2009. "Evolución de la eficiencia técnica de la industria textil española en el periodo 1995-2005. Análisis mediante un modelo frontera estocástica/Technical Efficiency In The Textile Industry Of Spain In Th," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 27, pages 779(32á)-77, Diciembre.
    3. Tantri, Malini L., 2014. "Promises and paradoxes of SEZs expansion in India," Working Papers 331, Institute for Social and Economic Change, Bangalore.
    4. Anup Kumar Bhandari, 2010. "Global Crisis, Environment Volatility and Expansion of Tthe Indian Leather Industry," Working Papers id:2500, eSocialSciences.
    5. Md. Shakil Ahmed & M. Daud Ahmed, 2013. "Efficiency Variation of Manufacturing Firms: A Case Study of Seafood Processing Firms in Bangladesh," Review of Economics & Finance, Better Advances Press, Canada, vol. 3, pages 45-56, May.

    More about this item

    Keywords

    textile industry; technical efficiency; stochastic frontier; Cobb Douglas production function; translog production function;

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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