Technical Efficiency in Indian Modern Small Scale Sector: An Application of Frontier Production function

T. A. Bhavani
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T. A. Bhavani: Institute of Economic Growth

Indian Economic Review, 1991, vol. 26, issue 2, 149-166

Abstract: The present study attempts to investigate the efficiency of four 4-digit level industries of metal products group belonging to the modern small scale sector. Based on firmlevel data, we attempt to measure the technical efficiency of the selected industries using translog production frontier with three inputs viz., capital, labour and materials. In order to see the sensitivity of efficiency estimates to the distribution selected in the frontier model, we consider three widely used distributions namely, the Gamma, the Exponential and the Half-Normal. The results show high efficiency levels for the four selected industries.

Date: 1991
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