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A Comparative Analysis of Efficiency and Productivity of the Indian Pharmaceutical Firms: A Malmquist-Meta-Frontier Approach

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  • Mainak Mazumdar

    (Institute for Social and Economic Change)

  • Meenakshi Rajeev

    (Institute for Social and Economic Change)

Abstract

This paper examines the technical efficiency, technological gap ratio (TGR) and productivity change of Indian pharmaceutical firms across different groups. The groups are formed based on their size, strategies and product varieties. The study indicates that vertically integrated firms that produce both bulk drug and formulation exhibit higher technological innovation and efficiency. However, in contrast to the popular belief, the analysis reveals that increased export earnings do not necessarily lead to higher efficiency. We also find that installing capital-intensive techniques or imported technology propel the technological growth of firms.

Suggested Citation

  • Mainak Mazumdar & Meenakshi Rajeev, 2009. "A Comparative Analysis of Efficiency and Productivity of the Indian Pharmaceutical Firms: A Malmquist-Meta-Frontier Approach," Working Papers 223, Institute for Social and Economic Change, Bangalore.
    • Handle: RePEc:sch:wpaper:223
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    References listed on IDEAS

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    Cited by:

    1. José Niño-Amézquita & Fedor Legotin & Oleg Barbakov, 2017. "Economic success and sustainability in pharmaceutical sector: a case of Indian SMEs," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 5(1), pages 157-168, September.
    2. Aas Mohammad & Bandi Kamaiah, 2016. "Efficiency Analysis of Indian Pharmaceutical Companies in the Post-TRIPS and Post Product Patent Regime using Stochastic Frontier Approach," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 19(62), pages 5-24, December.
    3. Chia-Nan Wang & Hector Tibo & Hong Anh Nguyen, 2020. "Malmquist Productivity Analysis of Top Global Automobile Manufacturers," Mathematics, MDPI, vol. 8(4), pages 1-21, April.
    4. Fernando Gascón & Jesús Lozano & Borja Ponte & David Fuente, 2017. "Measuring the efficiency of large pharmaceutical companies: an industry analysis," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(5), pages 587-608, June.
    5. Liao, Chun-Hsiung & Lien, Chun-Yu, 2012. "Measuring the technology gap of APEC integrated telecommunications operators," Telecommunications Policy, Elsevier, vol. 36(10), pages 989-996.
    6. Soumita Khan, 2017. "Efficiency of Indian fertilizer firms: A s tochastic frontier approach," Working Papers 396, Institute for Social and Economic Change, Bangalore.
    7. Tulika Bhattacharya & Meenakshi Rajeev & Indrajit Bairagya, 2018. "Are high-linked sectors more productive in India? An analysis under an input–output framework," Indian Economic Review, Springer, vol. 53(1), pages 333-367, December.
    8. Varun Mahajan & D. K. Nauriyal & S. P. Singh, 2020. "Domestic market competitiveness of Indian drug and pharmaceutical industry," Review of Managerial Science, Springer, vol. 14(3), pages 519-559, June.
    9. José Niño-Amézquita & Fedor Legotin & Oleg Barbakov, 2017. "Economic success and sustainability in pharmaceutical sector: a case of Indian SMEs," Post-Print hal-01735846, HAL.
    10. Chiu, Yung-Ho & Lee, Jen-Hui & Lu, Ching-Cheng & Shyu, Ming-Kuang & Luo, Zhengying, 2012. "The technology gap and efficiency measure in WEC countries: Application of the hybrid meta frontier model," Energy Policy, Elsevier, vol. 51(C), pages 349-357.

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