Efficiency of Indian Manufacturing Firms: Textile Industry as a Case Study

Anup Kumar Bhandari and Pradip Maiti
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Anup Kumar Bhandari: Economic Research Unit, Indian Statistical Institute, India
Pradip Maiti: Economic Research Unit, Indian Statistical Institute, India

International Journal of Business and Economics, 2007, vol. 6, issue 1, 71-88

Abstract: Translog stochastic frontier production functions are fit to firm-level cross-sectional data on India's textile firms for each of five selected years to estimate technical efficiency (TE) of firms. We find that average TE varies between 68 to 84% across these years and that individual TEs vary with firm-specific characteristics such as size and age. Further, public sector firms are found to be relatively less efficient.

Keywords: textile industry; technical efficiency; stochastic frontier; Cobb Douglas production function; translog production function (search for similar items in EconPapers)
JEL-codes: C12 C13 L25 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (13)

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