Measuring Technical Efficiency in the Indian Automobile Industry

Ritwik Mazumder and Maniklal Adhikary ()
Additional contact information
Ritwik Mazumder: Ritwik Mazumder (corresponding author), Department of Economics, Assam University, Silchar, Assam, India. Email: r_itwikm@yahoo.com

South Asia Economic Journal, 2010, vol. 11, issue 1, 53-67

Abstract: This study has measured firm-specific time invariant technical efficiency in the Indian automobile industry during 2004–06 using a suitably constructed stochastic production frontier. The one-sided inefficiency random variable is assumed to be truncated normal with a variable mode which is non-neutral with respect to some selected firm-specific factors, capable of explaining inter-firm variations in the level of technical inefficiency. It is found that age of the firm since inception and level of technical efficiency are inversely associated. However, the market share of the firm and the degree of automation are found to be positively associated with firm level technical efficiency. Statistical tests further reveal that the underlying technology in the automobile industry in India is linear homogeneous.

Keywords: Technical Efficiency; Stochastic Production Frontier; Indian Automobile Industry; Inefficiency Effects Model; JEL: C23; JEL: C51; JEL: L60 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/139156141001100104 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:soueco:v:11:y:2010:i:1:p:53-67

DOI: 10.1177/139156141001100104

Access Statistics for this article

More articles in South Asia Economic Journal from Institute of Policy Studies of Sri Lanka
Bibliographic data for series maintained by SAGE Publications ().