Technical Efficiency in the Indian Textiles Industry: A Nonparametric Analysis of Firm-Level Data

Anup Kumar Bhandari and Subhash Ray ()
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Anup Kumar Bhandari: Indian Statistical Institute, Kolkata

No 2007-49, Working papers from University of Connecticut, Department of Economics

Abstract: The Indian textiles industry is now at the crossroads with the phasing out of quota regime that prevailed under the Multi-Fiber Agreement (MFA) until the end of 2004. In the face of a full integration of the textiles sector in the WTO, maintaining and enhancing productive efficiency is a precondition for competitiveness of the Indian firms in the new liberalized world market. In this paper we use data obtained from the Annual Survey of Industries for a number of years to measure the levels of technical efficiency in the Indian textiles industry at the firm level. We use both a grand frontier applicable to all firms and a group frontier specific to firms from any individual state, ownership, or organization type in order to evaluate their efficiencies. This permits us to separately identify how locational, proprietary, and organizational characteristics of a firm affect its performance.

Keywords: Data Envelopment Analysis; Meta-Frontier; Technology Closeness ratio (search for similar items in EconPapers)
JEL-codes: L67 C61 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-cwa and nep-eff
Date: 2007-11
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