Efficiency of Indian Manufacturing Firms: Textile Industry as a Case Study
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.
Volume (Year): 6 (2007)
Issue (Month): 1 (April)
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