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A Non-Radial Measure of Efficiency in Indian Textile Industry: An Analysis of Unit-Level Data

Author

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  • Subhash C. Ray

    (University of Connecticut)

  • Chiranjib Neogi

    (Indian Statistical Institute, Calcutta)

Abstract

In this paper we apply Data Envelopment Analysis (DEA) to firm level data from various years of Annual Survey of Industry to obtain Pareto-Koopmans measures of technical efficiency in the Indian textile garments industry. The overall efficiency measure is multiplicatively decomposed into an input- and an output-oriented Russell type non-radial measure. For the second stage regression of DEA efficiency scores in terms of age, ownership, regional location, and other characteristics of a firm, we perform a Box-Cox transformation of the one-sided dependent variable to avoid using a Tobit regression in a context where there is no obvious censoring of the data.

Suggested Citation

  • Subhash C. Ray & Chiranjib Neogi, 2007. "A Non-Radial Measure of Efficiency in Indian Textile Industry: An Analysis of Unit-Level Data," Working papers 2007-38, University of Connecticut, Department of Economics.
    • Handle: RePEc:uct:uconnp:2007-38
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    References listed on IDEAS

    as
    1. Danish Hashim, 2004. "Cost & productivity in Indian textiles: Post MFA implications," Indian Council for Research on International Economic Relations, New Delhi Working Papers 147, Indian Council for Research on International Economic Relations, New Delhi, India.
    2. Fare, Rolf & Knox Lovell, C. A., 1978. "Measuring the technical efficiency of production," Journal of Economic Theory, Elsevier, vol. 19(1), pages 150-162, October.
    3. Chambers, Robert G. & Chung, Yangho & Fare, Rolf, 1996. "Benefit and Distance Functions," Journal of Economic Theory, Elsevier, vol. 70(2), pages 407-419, August.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Ram Pratap Sinha, 2021. "Indebtedness, Fiscal Discipline and Development Spending – A Non-parametric Approach," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 13(2), pages 147-173, June.

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    More about this item

    Keywords

    DEA; Pareto-Koopmans Efficiency; Box-Cox Transformation;
    All these keywords.

    JEL classification:

    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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