IDEAS home Printed from https://ideas.repec.org/a/sae/entthe/v31y2007i6p853-872.html
   My bibliography  Save this article

Private Enterprise Growth and Human Capital Productivity in India

Author

Listed:
  • Sumit K. Majumdar

Abstract

This article examines patterns of growth in private firms and private equity investment and in the decline in state–owned firms and equity capital within the corporate sector in Indian industry over a 25–year period, 1973–1974 to 1997–1998, with some additional analysis extended to 2001–2002, to assess whether a transformation in ownership has taken place, whether the boundaries of the state as a participant in industry have significantly declined and the boundaries of private enterprise enhanced. The data cover the entire industrial population of India. The boundaries of the state as an industrial participant have shrunk significantly as a result of the growth of private entrepreneurship in India, especially in industries where agents are engaged in technological entrepreneurship. The numbers of private companies established in India have grown and the volume of equity capital being invested has risen substantially. Associated with this relative growth of private firms and shrinking of government ownership is a significant increase in human capital productivity across all ownership categories of Indian industry.

Suggested Citation

  • Sumit K. Majumdar, 2007. "Private Enterprise Growth and Human Capital Productivity in India," Entrepreneurship Theory and Practice, , vol. 31(6), pages 853-872, November.
    • Handle: RePEc:sae:entthe:v:31:y:2007:i:6:p:853-872
    DOI: 10.1111/j.1540-6520.2007.00205.x
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1111/j.1540-6520.2007.00205.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1540-6520.2007.00205.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Oliver D. Hart, 1983. "The Market Mechanism as an Incentive Scheme," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 366-382, Autumn.
    2. Boardman, Anthony E & Vining, Aidan R, 1989. "Ownership and Performance in Competitive Environments: A Comparison of the Performance of Private, Mixed, and State-Owned Enterprises," Journal of Law and Economics, University of Chicago Press, vol. 32(1), pages 1-33, April.
    3. Pradeep K. Chhibber & Sumit K. Majumdar, 1998. "Does it pay to venture abroad? Exporting behavior and the performance of firms in Indian industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 19(2), pages 121-126.
    4. Putterman Louis, 1993. "Ownership and the Nature of the Firm," Journal of Comparative Economics, Elsevier, vol. 17(2), pages 243-263, June.
    5. Ben-Ner Avner & Montias John Michael & Neuberger Egon, 1993. "Basic Issues in Organizations: A Comparative Perspective," Journal of Comparative Economics, Elsevier, vol. 17(2), pages 207-242, June.
    6. Michael A. Hitt & Beverly B. Tyler, 1991. "Strategic decision models: Integrating different perspectives," Strategic Management Journal, Wiley Blackwell, vol. 12(5), pages 327-351, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sumit Majumdar, 2011. "Scalability versus flexibility: firm size and R&D in Indian industry," The Journal of Technology Transfer, Springer, vol. 36(1), pages 101-116, February.
    2. Leona Achtenhagen & Lucia Naldi & Leif Melin, 2010. "“Business Growth†—Do Practitioners and Scholars Really Talk about the Same Thing?," Entrepreneurship Theory and Practice, , vol. 34(2), pages 289-316, March.
    3. Lindič, Jaka & Bavdaž, Mojca & Kovačič, Helena, 2012. "Higher growth through the Blue Ocean Strategy: Implications for economic policy," Research Policy, Elsevier, vol. 41(5), pages 928-938.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sumit K. Majumdar, 2008. "Why Privatize? The Decline of Public Ownership in India and its Impact on Industrial Performance," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 9(2), pages 293-336, September.
    2. John Vickers & George Yarrow, 1991. "Economic Perspectives on Privatization," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 111-132, Spring.
    3. Amaral, Miguel, 2008. "Public vs private management of public utilities - The case of urban public transport in Europe," Research in Transportation Economics, Elsevier, vol. 22(1), pages 85-90, January.
    4. Natália Barbosa & Helen Louri, 2005. "Corporate Performance: Does Ownership Matter? A Comparison of Foreign- and Domestic-Owned Firms in Greece and Portugal," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 27(1), pages 73-102, August.
    5. Hoisl, Karin & Stelzer, Tobias & Biala, Stefanie, 2015. "Forecasting technological discontinuities in the ICT industry," Research Policy, Elsevier, vol. 44(2), pages 522-532.
    6. Majumdar, Sumit K., 1998. "Slack in the state-owned enterprise: An evaluation of the impact of soft-budget constraints," International Journal of Industrial Organization, Elsevier, vol. 16(3), pages 377-394, May.
    7. Eskil Goldeng & Leo A. Grünfeld & Gabriel R. G. Benito, 2008. "The Performance Differential between Private and State Owned Enterprises: The Roles of Ownership, Management and Market Structure," Journal of Management Studies, Wiley Blackwell, vol. 45(7), pages 1244-1273, November.
    8. Yu, Zhuangxiong & Li, Jie & Yang, Jian, 2017. "Does corporate governance matter in competitive industries? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 43(C), pages 238-255.
    9. Sumit Majumdar & Kunal Sen, 2010. "Corporate borrowing and profitability in India," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(1), pages 33-45.
    10. Schwab, Daniel & Werker, Eric, 2018. "Are economic rents good for development? Evidence from the manufacturing sector," World Development, Elsevier, vol. 112(C), pages 33-45.
    11. Warzynski, Frederic, 2003. "Managerial change, competition, and privatization in Ukraine," Journal of Comparative Economics, Elsevier, vol. 31(2), pages 297-314, June.
    12. Carías Vega, Dora E. & Keenan, Rodney J., 2016. "Situating community forestry enterprises within New Institutional Economic theory: What are the implications for their organization?," Journal of Forest Economics, Elsevier, vol. 25(C), pages 1-13.
    13. Chhibber, Pradeep K & Majumdar, Sumit K, 1999. "Foreign Ownership and Profitability: Property Rights, Control, and the Performance of Firms in Indian Industry," Journal of Law and Economics, University of Chicago Press, vol. 42(1), pages 209-238, April.
    14. Li, Shiyu & Lin, Shuanglin, 2011. "Is there any gain from social security privatization?," China Economic Review, Elsevier, vol. 22(3), pages 278-289, September.
    15. Rajesh K. Aggarwal & Andrew A. Samwick, 1999. "Executive Compensation, Strategic Competition, and Relative Performance Evaluation: Theory and Evidence," Journal of Finance, American Finance Association, vol. 54(6), pages 1999-2043, December.
    16. Bozec, Richard, 2004. "L’analyse comparative de la performance entre les entreprises publiques et les entreprises privées : le problème de mesure et son impact sur les résultats," L'Actualité Economique, Société Canadienne de Science Economique, vol. 80(4), pages 619-654, Décembre.
    17. Muhammad Imran Hanif & Muhammad Shahzad Hani & Asif Kamran & Rabia Khan & Shao Yunfei, 2016. "Knowledge Sharing And Innovation Performance Affected By Hr Generic Strategies: An Empirical Study Of Smes In China And Pakistan," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 12(1), pages 272-306.
    18. SangHyun Cheon & Dong-Wook Song & Sungjin Park, 2018. "Does more competition result in better port performance?," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(3), pages 433-455, September.
    19. Andres, Luis & Foster, Vivien & Guasch, Jose Luis, 2006. "The impact of privatization on the performance of the infrastructure sector : the case of electricity distribution in Latin American countries," Policy Research Working Paper Series 3936, The World Bank.
    20. Schweizer, Lars & Patzelt, Holger, 2012. "Employee commitment in the post-acquisition integration process: The effect of integration speed and leadership," Scandinavian Journal of Management, Elsevier, vol. 28(4), pages 298-310.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:entthe:v:31:y:2007:i:6:p:853-872. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.