Technical Efficiency, Technological Change and Total Factor Productivity Growth of Selected Manufacturing Firms in India (original) (raw)
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Estimating Factors Affecting Technical Efficiency in Indian Manufacturing Sector
Eurasian Journal of Business and Economics, 2019
Existing studies could not estimate the technical efficiency (TE) of firms and it's affecting factors in the Indian manufacturing sector. So, the present study examines the TE of firms using a stochastic frontier production function approach. Thereupon, it examines the impact of S&T and IPRs related factors on estimated TE of firms using a linear regression model. Estimated values of TE of firms show that most firms have a TE of 94%; thus, firms are efficient in producing surplus production in the manufacturing sector. It is acclaimed that firms can improve production scale using more technological upgradation and advancement. Furthermore, empirical results indicate that process innovations of firms, quality certification of firm, firm acquired process/product patents, in-house R&D expertise of firms, public-technology support institutions of firms, proficiency to improve processes of firms, new or improved products of firms, waste management capabilities of firms, and skilled workforce of firms are appeared effective activities to increase the TE of firms. It is proposed that there is a requirement to increase R&D expenditure, a collaboration of industries with research academia, incentive to researchers and scientists to do extensive research in emerging sectors of technologies and appropriate financial support to firms to boost the growth of Indian manufacturing sector.
Productivity Change in Indian Manufacturing: A Comparison of Pre Reform and Post Reform Period
ANUSANDHAN – NDIM's Journal of Business and Management Research
The economic reforms were initiated in 1991 as part of the structural adjustment programme in India. It constituted of the three-pronged approach of Liberalization, Privatization and Globalization to boost investment, production and productivity in the economy. This paper attempts to analyse the trend of, technical efficiency, technological change and TFP growth in the Indian manufacturing sector during 1981-82 to 2011-12. The period up to 1990-91 is considered as pre-reform while the subsequent period is regarded as post-reform. The data used in this study for calculating productivity and its various components have been sourced from the Annual Survey of Industries (ASI) for the relevant years. The manufacturing sector is modelled as an industry producing a scalar output measured by the gross value added at constant prices by employing two-factor inputs namely labour and capital. Data Envelopment Analysis based Malmquist Index has been calculated to arrive at the estimates of techn...
In the framework of resources-based view, a firm's performance is often defined in terms of its efficiency level in relation to other firms in an industry. Adopting this framework, the study examines the technological determinants of firm-level technical efficiency (TE) in the context of Indian machinery industry (IMI). It first computes the firm-and year-specific TE by estimating a stochastic frontier production function with the help of an unbalanced panel of data on a sample of 178 firms (with 940 observation) for seven years covering financial years from 2000/2001 to 2006/2007. Thereafter, the study analyses the determinants of firm-level TE by estimating a random-effect panel data model with Tobit specification. The study finds that a firm in the IMI could improve its TE by enhancing its technological resources and capabilities through attraction of foreign direct investment (FDI), import of disembodied technology, in-house research and development (R&D), import of intermediate goods and use of capital intensive techniques of production. In addition, it is also found that the larger size and younger firms; firms with higher networth intensity and higher product differentiation; firms based in less concentrated sub-industries of IMI are more efficient. †
Productivity, Technical Progress and Scale Efficiency in Indian Manufacturing
This article studies the effects of the economic reforms on the Indian manufacturing industries. Data Envelopment Analysis was used to estimate technical and scale efficiency changes after the 1991 reform initiatives. The estimates suggest, however, that the efficiency of manufacturing industries declined during the post-reform era. The variations are different across industries, and the findings demonstrate the importance of technological progress for improving manufacturing efficiency and productivity in India.
Productivity and efficiency of labour intensive manufacturing industries in India
International Journal of Development Issues, 2016
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2010
This article studies the effects of the economic reforms on the Indian manufacturing industries. Data Envelopment Analysis was used to estimate technical and scale efficiency changes after the 1991 reform initiatives. The estimates suggest, however, that the efficiency of manufacturing industries declined during the post-reform era. The variations are different across industries, and the findings demonstrate the importance of technological progress for improving manufacturing efficiency and productivity in India.
This article studies the effects of the economic reforms on the Indian manufacturing industries. Data Envelopment Analysis was used to estimate technical and scale efficiency changes after the 1991 reform initiatives. The estimates suggest, however, that the efficiency of manufacturing industries declined during the post-reform era. The variations are different across industries, and the findings demonstrate the importance of technological progress for improving manufacturing efficiency and productivity in India.
Technological Progress versus Efficiency Gain in Manufacturing Sectors
Review of Development Economics, 1998
This study decomposes the nonparametric Malmquist productivity index for 36 Korean manufacturing sectors into two components: technological change and technical efficiency change. The empirical results show that while each sector displays quite different growth patterns, productivity growth is dominated by technological change. Technological change is found to have a negative correlation with efficiency change. Secondary regression performed in this study identifies the relationship between productivity growth measures and several key policy variables, such as effective protection rate, market concentration, and so forth. The productivity estimates are compared with those of the conventional Törnqvist productivity index.
Productivity Growth of Indian Manufacturing Firms in an Era of Economic Reforms : A Review
This article provides an overview of recent studies on productivity growth of Indian manufacturing firms in the post-1991 period. The central question is whether there has been a significant acceleration in productivity growth rates of manufacturing firms in India in an era of economic liberalization. This article has observed that impact of economic reforms is not uniform across all sectors. Studies have shown that factors like import of disembodied technology, availability of wider varieties of imported inputs, foreign investment, change in market structure and R&D intensity are significant determinants for productivity growth in the post-reform period.