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Who extracts minerals more efficiently—Public or private firms? A study of Indian mining industry

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  • Das, Amarendra

Abstract

Most of the developing countries across the world have opened up their mining industry for private sector participation since late 1980s with a view to increase the overall efficiency of the mineral extraction. But are the private mining firms really efficient than the public sector firms? In such a context this paper compares the extraction efficiency of public and private mining firms in India by assessing their Total Factor Productivity (TFP). The study reveals that TFP levels of private firms are significantly higher than that of public firms in metallic, non-metallic and coal mining sectors. TFP levels of private firms in non-metallic sector are almost double that of public firms. Similarly, private firms in metallic and coal mining industry are one and half times more productive than public firms. In such a context, we can suggest that private participation in the mining industry may boost the overall productivity of the sector.

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  • Das, Amarendra, 2012. "Who extracts minerals more efficiently—Public or private firms? A study of Indian mining industry," Journal of Policy Modeling, Elsevier, vol. 34(5), pages 755-766.
    • Handle: RePEc:eee:jpolmo:v:34:y:2012:i:5:p:755-766
    DOI: 10.1016/j.jpolmod.2012.02.005
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    Cited by:

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    3. Geissler, Bernhard & Mew, Michael C. & Weber, Olaf & Steiner, Gerald, 2015. "Efficiency performance of the world's leading corporations in phosphate rock mining," Resources, Conservation & Recycling, Elsevier, vol. 105(PB), pages 246-258.
    4. Alla Fridman, 2018. "Partial privatization in an exhaustible resource industry," Journal of Economics, Springer, vol. 124(2), pages 159-173, June.
    5. Kristina Söderholm & Linus Larsson & Patrik Söderholm, 2018. "Managing the 1970s energy crises in a state-owned mining company: strategies pursued by the Swedish iron ore producer LKAB," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 31(1), pages 179-190, May.
    6. Chandan Kumar Mohanty & Smrutirekha Mohanty, 2019. "Public–Private Wage Gap in the Indian Mining and Quarrying Industry," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 13(2), pages 232-253, May.
    7. Ganbold, Misheelt & Ali, Saleem H., 2017. "The peril and promise of resource nationalism: A case analysis of Mongolia's mining development," Resources Policy, Elsevier, vol. 53(C), pages 1-11.

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    More about this item

    Keywords

    Firm ownership; Total Factor Productivity; Mining industry;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels

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