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Technical Efficiency and Its Dynamics in Indian Manufacturing: An Inter-State Analysis

Author

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  • Kankana Mukherjee

    (Worcester Polytechnic Institute)

  • Subhash C. Ray

    (University of Connecticut)

Abstract

This paper analyzes state level data from the manufacturing sector in India for the period 1986-87 to 1999-00 to study the efficiency dynamics of a "typical" firm in individual states during the pre- and post reform years. Using the non-parametric method of Data Envelopment Analysis we utilize super-efficiency models to rank the states in terms of their performance and investigate the dynamics of the efficiency rankings over time. We find no major change in the efficiency ranking of states after the reforms. Nor is there any evidence of convergence in the distribution of efficiency in the post-reform period.

Suggested Citation

  • Kankana Mukherjee & Subhash C. Ray, 2004. "Technical Efficiency and Its Dynamics in Indian Manufacturing: An Inter-State Analysis," Working papers 2004-18, University of Connecticut, Department of Economics.
    • Handle: RePEc:uct:uconnp:2004-18
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    Cited by:

    1. Arnab K. Deb & Subhash C. Ray, 2014. "An Inter-state Analysis of Total Factor Productivity Growth in Selected Two-digit Manufacturing Industries in India," Global Business Review, International Management Institute, vol. 15(4_suppl), pages 59-86, December.
    2. Rawat, Pankaj S. & Sharma, Seema, 2021. "TFP growth, technical efficiency and catch-up dynamics: Evidence from Indian manufacturing," Economic Modelling, Elsevier, vol. 103(C).
    3. Anup Kumar Bhandari & Pradip Maiti, 2007. "Efficiency of Indian Manufacturing Firms: Textile Industry as a Case Study," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 6(1), pages 71-88, April.
    4. Dipa Mukherjee & Rajarshi Majumder, 2007. "Efficiency, technological progress and regional comparative advantage: a study of the organized manufacturing sector in India," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 14(2), pages 23-54, December.
    5. Anup Kumar Bhandari, 2010. "Global Crisis, Environment Volatility and Expansion of Tthe Indian Leather Industry," Working Papers id:2500, eSocialSciences.
    6. Tantri, Malini L., 2014. "Promises and paradoxes of SEZs expansion in India," Working Papers 331, Institute for Social and Economic Change, Bangalore.
    7. Arnab K. Deb & Subhash C. Ray, 2013. "Economic Reforms and Total Factor Productivity Growth of Indian Manufacturing: An Inter-State Analysis," Working papers 2013-04, University of Connecticut, Department of Economics, revised Apr 2013.
    8. Tariq Mahmood & Ejaz Ghani & Musleh Ud Din, 2015. "Are Our Export-Oriented Industries Technically More Efficient?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(2), pages 97-121.
    9. Mazumdar, Mainak & Rajeev, Meenakshi & Ray, Subhash C., 2012. "Sources of Heterogeneity in the Efficiency of Indian Pharmaceutical Firms," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 47(2), pages 191-221.
    10. Soumita Khan, 2017. "Efficiency of Indian fertilizer firms: A s tochastic frontier approach," Working Papers 396, Institute for Social and Economic Change, Bangalore.
    11. Soumita Khan, 2018. "An evaluation of input-specific technical efficiency of Indian fertilizer firms," Working Papers 410, Institute for Social and Economic Change, Bangalore.
    12. Anup Bhandari & Pradip Maiti, 2012. "Efficiency of the Indian leather firms: some results obtained using the two conventional methods," Journal of Productivity Analysis, Springer, vol. 37(1), pages 73-93, February.
    13. Padmavathi N, 2019. "Technical efficiency of unorganised food processing industry in India: A stochastic frontier analysis," Working Papers 449, Institute for Social and Economic Change, Bangalore.
    14. Oleg Badunenko & Kiril Tochkov, 2010. "Soaring dragons, roaring tigers, growling bears," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 18(3), pages 539-570, July.
    15. Malini L. Tantri, 2012. "Did the metamorphosis from Export Processing Zones to Special Economic Zones improve the efficiency of trade enclaves in India?," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 15(4), pages 321-337, December.
    16. Muhammad AFZAL & Maryam AYAZ, 2013. "Efficiency of Food Sector of Pakistan-A Dea Analysis," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 3(10), pages 1310-1330, October.

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    More about this item

    Keywords

    super efficiency; convergence; Markov chains.;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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