Economic reforms and technical efficiency: Firm level evidence from selected industries in India
This paper analyses the performance of the manufacturing firms in some selected industries in terms of their technical efficiency against the background of the industrial and trade policy reforms introduced in India since 1991. A stochastic frontier production function and an associated inefficiency model are used to measure time varying firm specific technical efficiency. We define technical change as the shift of the best practice production frontier and technical inefficiency change as the movement within the best practice technology. The results show that all the industries considered registered a higher rate of technical progress in the post reform period along with a decline in the level of technical efficiency. The effect of change in the policy environment on technical efficiency varies among industries. The study also found that firms' involvement in the international trade through export and import of raw materials and technology has a positive effect on technical efficiency.
|Date of creation:||Oct 2002|
|Date of revision:|
|Contact details of provider:|| Postal: Peasanth Nagar, Trivandrum 695 011, Kerala|
Phone: +91 471 2448 881
Fax: +91 471 2447 137
Web page: http://www.cds.edu
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Grossman, Gene M. & Helpman, Elhanan, 1991.
"Trade, knowledge spillovers, and growth,"
European Economic Review,
Elsevier, vol. 35(2-3), pages 517-526, April.
- Krishna, Pravin & Mitra, Devashish, 1998.
"Trade liberalization, market discipline and productivity growth: new evidence from India,"
Journal of Development Economics,
Elsevier, vol. 56(2), pages 447-462, August.
- Pravin Krishna & Devashish Mitra, . "Trade Liberalization, Market Discipline and Productivity Growth: New Evidence From India," Working Papers 96-8, Brown University, Department of Economics.
- David T. Coe & Elhanan Helpman & Alexander Hoffmaister, 1995.
"North-South R&D Spillovers,"
NBER Working Papers
5048, National Bureau of Economic Research, Inc.
- Deraniyagala, Sonali & Fine, Ben, 2001. "New Trade Theory versus Old Trade Policy: A Continuing Enigma," Cambridge Journal of Economics, Oxford University Press, vol. 25(6), pages 809-25, November.
- Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
- Horn, Henrik & Lang, Harald & Lundgren, Stefan, 1995.
"Managerial effort incentives, X-inefficiency and international trade,"
European Economic Review,
Elsevier, vol. 39(1), pages 117-138, January.
- Horn, H. & Lang, H. & Lundgren, S., 1991. "Managerial Effort Incentives, X-Inefficiency and International Trade," Papers 507, Stockholm - International Economic Studies.
- Martin, John P, 1978. "X-inefficiency, Managerial Effort and Protection," Economica, London School of Economics and Political Science, vol. 45(179), pages 273-86, August.
- Egan, Mary Lou & Mody, Ashoka, 1992. "Buyer-seller links in export development," World Development, Elsevier, vol. 20(3), pages 321-334, March.
- Tybout, James R, 1992. "Linking Trade and Productivity: New Research Directions," World Bank Economic Review, World Bank Group, vol. 6(2), pages 189-211, May.
- Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-48, September.
- Dani Rodrik, 1992. "The Limits of Trade Policy Reform in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 87-105, Winter.
- H. Schmitz & P. Knorringa, 2000. "Learning from Global Buyers," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 177-205.
- repec:ind:iegddp:28 is not listed on IDEAS
- Fare,Rolf & Grosskopf,Shawna & Lovell,C. A. Knox, 1993.
Cambridge University Press, number 9780521420334, December.
When requesting a correction, please mention this item's handle: RePEc:ind:cdswpp:339. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamprasad M. Pujar)
If references are entirely missing, you can add them using this form.