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Technical Efficiency in India?s Unorganised Manufacturing Sector: A Non-parametric Analysis

Author

Listed:
  • Jayanta Sen

    (West Bengal State University, Department of Economics)

  • Debarati Das

    (West Bengal State University, Department of Economics)

Abstract

Unorganized manufacturing sector accommodates a large portion of workforce who are poor and economically excluded in the developing economies. Indian economy witnessed a rapid economic growth after the adoption of globalization policies in the year 1991. Contribution of unorganized manufacturing sector to the gross domestic product has increased. This sector is generally characterized by low productivity and low efficiency. However increasing importance of this sector makes the efficiency analysis more crucial recently. An attempt has been made in this paper to examine the technical efficiency of India?s unorganized manufacturing sector across states. Efficiency levels across different industries/ industry groups are also examined. Data Envelopment Analysis, a non-parametric approach of measuring technical efficiency is used. National Sample Survey Organization (NSSO) data for 1994-95 and 2005-06 have been considered.

Suggested Citation

  • Jayanta Sen & Debarati Das, 2016. "Technical Efficiency in India?s Unorganised Manufacturing Sector: A Non-parametric Analysis," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 4(4), pages 92-101, November.
    • Handle: RePEc:sek:jijobm:v:4:y:2016:i:4:p:92-101
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    References listed on IDEAS

    as
    1. Karine Chapelle & Patrick Plane, 2005. "Productive Efficiency In The Ivorian Manufacturing Sector: An Exploratory Study Using A Data Envelopment Analysis Approach," The Developing Economies, Institute of Developing Economies, vol. 43(4), pages 450-471, December.
    2. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    3. Rajesh Raj, Seethamma Natarajan, 2007. "Technical Efficiency in the Informal Manufacturing Enterprises: Firm level evidence from an Indian state," MPRA Paper 7816, University Library of Munich, Germany.
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    More about this item

    Keywords

    Unorganized Manufacturing Sector; Production; Industry; Technical efficiency; Data Envelopment Analysis;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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