IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Engineering Industry, Corporate Ownership and Development: Are Indian Firms Catching Up with the Global Standard?

Listed author(s):
  • Rajdeep Singha

    (Institute for Social and Economic change)

  • K Gayithri

    (Institute for Social and Economic change)

The presence of multinational corporations (MNC) in the developing economies has to a certain extent, has enhanced efficiency across domestic firms, comparable to the advanced economies. This paper seeks to examine the extent of this convergence between the foreign and domestic firms in the context of the Indian engineering industry. This paper uses a stochastic production function technique to evaluate separately the efficiency of foreign and domestically owned engineering firms. Econometric models help explain not only the nature of convergence but also the factors underlying the variations in terms of efficiency. This paper brings to the fore the difference between productivity and efficiency across foreign and domestic firms in that ownership has a significant effect on the performance of firms. This paper also reveals that domestic firms, which have achieved efficiency levels almost equaling foreign firms, are faring better than other firms. At the individual level, trade liberalisation has had a significant impact on the efficiency of firms

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Institute for Social and Economic Change, Bangalore in its series Working Papers with number 256.

in new window

Length: 18 pages
Date of creation: 2010
Handle: RePEc:sch:wpaper:256
Contact details of provider: Postal:
Nagarabhavi, Bangalore - 560072

Phone: +91-80-23215468
Fax: +91-80-23217008
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:sch:wpaper:256. 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: (B B Chand)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.