[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ind/icrier/115.html
   My bibliography  Save this paper

Ownership and efficiency in engineering firms in India, 1990-91 to 1999-2000

Author

Listed:
  • B.N.Goldar

    (Indian Council for Research on International Economic Relations)

  • V.S.Renganathan

    (Indian Council for Research on International Economic Relations)

  • Rashmi Banga

    (Indian Council for Research on International Economic Relations)

Abstract
The paper analyzes the effect of ownership on efficiency of engineering firms in India in the 1990s, a decade of major economic reforms. Technical efficiency of firms, estimated with help of a stochastic frontier production function, is considered for the analysis. A comparison of technical efficiency is made among three groups of firms in Indian engineering: (1) firms with foreign ownership, (2) domestically owned private sector firms, and (3) public sector firms. The results clearly indicate that foreign firms in Indian engineering industry have higher technical efficiency than domestically owned firms. No significant difference in technical efficiency is found between private sector and public sector firms among the domestically owned firms. There are indications of a process of efficiency convergence - the domestically owned firms tending to catch up with foreign owned firms in terms of technical efficiency. The results show a positive relationship between international trade orien

Suggested Citation

  • B.N.Goldar & V.S.Renganathan & Rashmi Banga, 2003. "Ownership and efficiency in engineering firms in India, 1990-91 to 1999-2000," Indian Council for Research on International Economic Relations, New Delhi Working Papers 115, Indian Council for Research on International Economic Relations, New Delhi, India.
    • Handle: RePEc:ind:icrier:115
    as

    Download full text from publisher

    File URL: http://www.icrier.org/pdf/wp115.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sterner, Thomas, 1990. "Ownership, technology, and efficiency: An empirical study of cooperatives, multinationals, and domestic enterprises in the Mexican cement industry," Journal of Comparative Economics, Elsevier, vol. 14(2), pages 286-300, June.
    2. Ephraim Chirwa, 2001. "Privatization and Technical Efficiency: Evidence from the Manufacturing Sector in Malawi," African Development Review, African Development Bank, vol. 13(2), pages 276-307.
    3. Ann P. Bartel and Ann E. Harrison & Ann P. Bartel and Ann E. Harrison, 1999. "Ownership Versus Environment: Why are Public Sector Firms Inefficient?," William Davidson Institute Working Papers Series 257, William Davidson Institute at the University of Michigan.
    4. Martin J. Conyon & Sourafel Girma & Steve Thompson & Peter W. Wright, 2002. "The productivity and wage effects of foreign acquisition in the United Kingdom," Journal of Industrial Economics, Wiley Blackwell, vol. 50(1), pages 85-102, March.
    5. Kumbhakar, Subal C & Ghosh, Soumendra & McGuckin, J Thomas, 1991. "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business & Economic Statistics, American Statistical Association, vol. 9(3), pages 279-286, July.
    6. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    7. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jan Hanousek & Evžen Kočenda & Anastasiya Shamshur, 2014. "Efektivita evropských firem [Efficiency of European Firms]," Politická ekonomie, Prague University of Economics and Business, vol. 2014(3), pages 303-322.
    2. Hanousek, Jan & Kočenda, Evžen & Shamshur, Anastasiya, 2015. "Corporate efficiency in Europe," Journal of Corporate Finance, Elsevier, vol. 32(C), pages 24-40.
    3. V. Pradeep & Mita Bhattacharya & Jong-Rong Chen, 2017. "Spillover Effects of Research and Development, Exports and Foreign Investment on Productivity," Journal of South Asian Development, , vol. 12(1), pages 18-41, April.
    4. G. Chidambaran Iyer, 2009. "Indian multinationals, foreign multinationals and domestic firms," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 12(3), pages 243-247.
    5. G. Chidambaran Iyer, 2009. "Indian multinationals, foreign multinationals and domestic firms," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 12(3), pages 243-247.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tom Kompas & Tuong Nhu Che & R. Quentin Grafton, 2004. "Technical efficiency effects of input controls: evidence from Australia's banana prawn fishery," Applied Economics, Taylor & Francis Journals, vol. 36(15), pages 1631-1641.
    2. Daniel Solís & Boris E. Bravo‐Ureta & Ricardo E. Quiroga, 2009. "Technical Efficiency among Peasant Farmers Participating in Natural Resource Management Programmes in Central America," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 202-219, February.
    3. Dhehibi, Boubaker & Lachaal, Lassaad & Elloumi, Mohamed & Messaoud, Emna B., 2007. "Measurement and Sources of Technical Inefficiency in the Tunisian Citrus Growing Sector," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9391, European Association of Agricultural Economists.
    4. Noel Uri, 2003. "The Effect of Incentive Regulation in Telecommunications in the United States," Quality & Quantity: International Journal of Methodology, Springer, vol. 37(2), pages 169-191, May.
    5. Roy, Manish & Mazumder, Ritwik, 2016. "Technical Efficiency of Fish Catch in Traditional Fishing: A Study in Southern Assam," Journal of Regional Development and Planning, Rajarshi Majumder, vol. 5(1), pages 55-68.
    6. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    7. Edward Ebo ONUMAH & Bernhard BRÜMMER & Gabriele HÖRSTGEN-SCHWARK, 2010. "Productivity of the hired and family labour and determinants of technical inefficiency in Ghana's fish farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(2), pages 79-88.
    8. William Griffiths & Xiaohui Zhang & Xueyan Zhao, 2010. "A Stochastic Frontier Model for Discrete Ordinal Outcomes: A Health Production Function," Department of Economics - Working Papers Series 1092, The University of Melbourne.
    9. Coelli, Tim J. & Battese, George E., 1996. "Identification Of Factors Which Influence The Technical Inefficiency Of Indian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(2), pages 1-26, August.
    10. Roberto Furesi & Fabio Madau & Pietro Pulina, 2013. "Technical efficiency in the sheep dairy industry: an application on the Sardinian (Italy) sector," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 1(1), pages 1-11, December.
    11. Christopher F. Parmeter & Hung-Jen Wang & Subal C. Kumbhakar, 2017. "Nonparametric estimation of the determinants of inefficiency," Journal of Productivity Analysis, Springer, vol. 47(3), pages 205-221, June.
    12. Helvoigt, Ted L. & Adams, Darius M., 2009. "A stochastic frontier analysis of technical progress, efficiency change and productivity growth in the Pacific Northwest sawmill industry," Forest Policy and Economics, Elsevier, vol. 11(4), pages 280-287, July.
    13. Sophia P. Dimelis & Sotiris K. Papaioannou, 2011. "Technical Efficiency and the Role of ICT: A Comparison of Developed and Developing Countries," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 47(0), pages 40-53, July.
    14. Hung-Jen Wang, 2002. "Heteroscedasticity and Non-Monotonic Efficiency Effects of a Stochastic Frontier Model," Journal of Productivity Analysis, Springer, vol. 18(3), pages 241-253, November.
    15. Federica VIGANO & Andrea SALUSTRI, 2015. "Matching profit and Non-profit Needs: How NPOs and Cooperative Contribute to Growth in Time of Crisis. A Quantitative Approach," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(1), pages 157-178, March.
    16. Baños, José F. & Rodríguez-Álvarez, Ana & Suárez, Patricia, 2016. "Matching frontiers: A random parameter model approach," Efficiency Series Papers 2016/07, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    17. Nader Nazmi & Julio Revilla, 2011. "Brazil’s growth performance: a comparative perspective to the Asian giants," Economic Change and Restructuring, Springer, vol. 44(1), pages 7-24, April.
    18. Efthymios G. Tsionas, 2006. "Inference in dynamic stochastic frontier models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(5), pages 669-676, July.
    19. Zhichao Wang & Bao Hoang Nguyen & Valentin Zelenyuk, 2024. "Performance analysis of hospitals in Australia and its peers: a systematic and critical review," Journal of Productivity Analysis, Springer, vol. 62(2), pages 139-173, October.
    20. Karim L. Anaya & Michael G. Pollitt, 2014. "Does Weather Have an Impact on Electricity Distribution Efficiency? Evidence from South America," Working Papers EPRG 1404, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ind:icrier:115. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: G.K. Manjunath/A. Reddy (email available below). General contact details of provider: https://edirc.repec.org/data/icriein.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.