Efficiency of Indian Organized Manufacturing in Liberalized Regime: A Stochastic Frontier Approach
Published: 2019
Author(s) Name: Sajal Jana |
Author(s) Affiliation: Assistant Professor, Dept of Economics, Dinabandhu Andrews College Baishnabghata, Garia, Kolkata
Locked
Subscribed
Available for All
Abstract
This paper attempts to estimate
technical efficiency of Indian
manufacturing industries across
fifteen major states by estimating
a time varying stochastic frontier
production function and inefficiency
effects model using panel
data. The study covers the time
period from 1993 to 2011 and
reveals that there is an increasing
trend of technical efficiency
across the states. The Indian industrial
sector recorded
anaverage technical efficiency of
0.663. The estimated parameters
of the translog production model
using maximum likelihood method
are statistically significant at conventional
levels though their
signs differ. The likelihood ratio
test statistic rejects the Cobb-
Douglas production technology
as description of the database
given the specification of the
translog formulation.
Keywords: N.A.
View PDF