Regional grwoth differentials in Indian manufacturing sector: A convergence analysis
By: Arora, Neha. and Singh, Parminder
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BookPublisher: Artha Vijnana Description: 62(3), Sep, 2020: p.239-256.
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Artha VijnanaSummary: The paper examines the efficiency variations as well as the convergence analysis of efficiency levels in Indian manufacturing sector during pre- and post-reforms period spanning from 1980/81 to 2014/15. Using non- parametric approach of data envelopment analysis (DEA), the mean scores of technical efficiency (TE) as well as scale efficiency (SE) have been computed for sixteen major Indian states. Results of the study revealed an average efficiency (inefficiency) to the tune of 76 per cent (24 per cent) in Indian manufacturing sector as a whole. Further, the decomposition analysis of technical inefficiency into pure technical inefficiency (PTE) and scale inefficiency (SE) revealed pure technical inefficiency (also known as managerial inefficiency) as the dominant source of overall technical inefficiency inthese states. In case of convergence analysis, results of the study confirm the presence of convergence during pre-reforms period only, which totally disappeared during the post-reforms period. It implies that the phenomenon of “learning by doing” is almost missing in these manufacturing states. Further, the analysis reveals that the process of economic reforms has failed to render a positive impact to narrow down the inequalities or improving the efficiency of Indian manufacturing sector. –Reproduced
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
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Articles
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Indian Institute of Public Administration | 62(3), Sep, 2020: p.239-256 | Available | AR124299 |
The paper examines the efficiency variations as well as the convergence analysis of efficiency levels in Indian manufacturing sector during pre- and post-reforms period spanning from 1980/81 to 2014/15. Using non- parametric approach of data envelopment analysis (DEA), the mean scores of technical efficiency (TE) as well as scale efficiency (SE) have been computed for sixteen major Indian states. Results of the study revealed an average efficiency (inefficiency) to the tune of 76 per cent (24 per cent) in Indian manufacturing sector as a whole. Further, the decomposition analysis of technical inefficiency into pure technical inefficiency (PTE) and scale inefficiency (SE) revealed pure technical inefficiency (also known as managerial inefficiency) as the dominant source of overall technical inefficiency inthese states. In case of convergence analysis, results of the study confirm the presence of convergence during pre-reforms period only, which totally disappeared during the post-reforms period. It implies that the phenomenon of “learning by doing” is almost missing in these manufacturing states. Further, the analysis reveals that the process of economic reforms has failed to render a positive impact to narrow down the inequalities or improving the efficiency of Indian manufacturing sector. –Reproduced
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