Preview

Technical Efficiency in the Indian Textiles Industry: a Nonparametric Analysis of Firm-Level Data

Powerful Essays
Open Document
Open Document
7616 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Technical Efficiency in the Indian Textiles Industry: a Nonparametric Analysis of Firm-Level Data
University of Connecticut

DigitalCommons@UConn
Economics Working Papers Department of Economics

11-1-2007

Technical Efficiency in the Indian Textiles Industry: A Nonparametric Analysis of Firm-Level Data
Anup Kumar Bhandari
Indian Statistical Institute, Kolkata

Subhash C. Ray
University of Connecticut

Follow this and additional works at: http://digitalcommons.uconn.edu/econ_wpapers Recommended Citation
Bhandari, Anup Kumar and Ray, Subhash C., "Technical Efficiency in the Indian Textiles Industry: A Nonparametric Analysis of FirmLevel Data" (2007). Economics Working Papers. Paper 200749. http://digitalcommons.uconn.edu/econ_wpapers/200749

This is brought to you for free and open access by the Department of Economics at DigitalCommons@UConn. It has been accepted for inclusion in Economics Working Papers by an authorized administrator of DigitalCommons@UConn. For more information, please contact digitalcommons@uconn.edu.

Department of Economics Working Paper Series
Technical Efficiency in the Indian Textiles Industry: A Nonparametric Analysis of Firm-Level Data Anup Kumar Bhandari
Indian Statistical Institute, Kolkata

Subhash C. Ray
University of Connecticut

Working Paper 2007-49 November 2007

341 Mansfield Road, Unit 1063 Storrs, CT 06269–1063 Phone: (860) 486–3022 Fax: (860) 486–4463 http://www.econ.uconn.edu/ This working paper is indexed on RePEc, http://repec.org/

Abstract
The Indian textiles industry is now at the crossroads with the phasing out of quota regime that prevailed under the Multi-Fiber Agreement (MFA) until the end of 2004. In the face of a full integration of the textiles sector in the WTO, maintaining and enhancing productive efficiency is a precondition for competitiveness of the Indian firms in the new liberalized world market. In this paper we use data obtained from the Annual Survey of Industries for a number of years to measure the levels of technical efficiency in the Indian textiles industry at the firm



References: Bhandari, A. K. and P. Maiti (2007), “Efficiency of Indian Manufacturing Firms: Textile Industry as a Case Study”, International Journal of Business and Economics, 6 (1), 71-88. Ray, S. C. (1997), “Regional Variation in Productivity Growth in Indian Manufacturing: A Nonparametric Analysis”, Journal of Quantitative Economics, 13 (1), 73-94.

You May Also Find These Documents Helpful

  • Good Essays

    Documents 1, 2, and 6 all show the increased usage of machines in Japanese and Indian cotton factories. The chart in Document 1 that details the production of cotton yarn and cloth in India shows how India utilized more machines to create more yarn and cloth in 1914 than in 1884. The chart shows how machine spun yarn was surpassing the amount of hand-woven yarn, as well as how the amount of machine-made cloth is quickly catching the amount of hand-woven cloth, which shows the mechanization of India’s cotton industry. This document is reliable because it is data collected from British colonial officials who would have no benefit of altering the data in any way. The Indian economist Radhakamal Mukerjee who wrote “The Foundation of Indian Economics” (1916) in Document 6 talks of how handloom cloth weavers cannot compete with the machines in the factories and are rapidly declining. This shows India’s step towards a more mechanized cloth industry. The document is not completely reliable because as an economist, the author may have overemphasized the decline of India’s handloom weavers to show economic growth. Comparable to India’s increased production of machine spun yarn is Japan’s outlined by the chart in document 2. Japan’s incredulous increase in machine spun yarn from five million pounds in 1884 to 666 in 1914 dwarfs India’s growth that was 151 million pounds in 1884 to only 652 in 1914. Document two may not be completely reliable because the data may have been altered to make Japan’s Industry is improving just a bit faster than India’s.…

    • 1230 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Econ 201 Syllabus

    • 1021 Words
    • 5 Pages

    RICE UNIVERSITY Department of Economics Economics 201 Microeconomics I Fall Semester, 2012 Prof. J. Brown…

    • 1021 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Super Bowl

    • 7074 Words
    • 29 Pages

    Department of Economics, Box 157A, College of the Holy Cross, Worcester, MA 01610-2395 USA, 508-793-2649 (phone), 508-793-3708 (fax), vmatheso@holycross.edu…

    • 7074 Words
    • 29 Pages
    Powerful Essays
  • Powerful Essays

    Jondrow, J., C. A. K. Lovell, I. S. Materov and P. Schimidt (1982), ‘On the Estimation of Technical Efficiency in the Stochastic Frontier Production Function Model’, Journal of Econometrics, 19, 233-238.…

    • 5176 Words
    • 21 Pages
    Powerful Essays
  • Better Essays

    Economic Theory

    • 1225 Words
    • 5 Pages

    This paper was prepared for ECN 150, Introduction to Microeconomics, Module 2 Homework Assignment taught by Nikki Follis.…

    • 1225 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Coelli, T., Prasada Rao, D., O 'Donnell, C., & Battese, G. (2005). An Introduction to Efficiency and Productivity Analysis. New York:…

    • 47665 Words
    • 323 Pages
    Good Essays
  • Satisfactory Essays

    2.2 Turkish Manufacturing Industry in terms of Production and its Value Added in GDP……………………………………………………. …………………….7…

    • 4440 Words
    • 25 Pages
    Satisfactory Essays
  • Powerful Essays

    The copyright to this Article is held by the Econometric Society. It may be downloaded, printed and reproduced only for educational or research purposes, including use in course packs. No downloading or copying may be done for any commercial purpose without the explicit permission of the Econometric Society. For such commercial purposes contact the Office of the Econometric Society (contact information may be found at the website http://www.econometricsociety.org or in the back cover of Econometrica). This statement must the included on all copies of this Article that are made available electronically or in any other format.…

    • 11173 Words
    • 45 Pages
    Powerful Essays
  • Satisfactory Essays

    Porter for Textile

    • 3933 Words
    • 16 Pages

    A constituent of Jaypee Institute of Information Technology (Declared Deemed to be University u/s 3 of UGC Act) A-10, Sector 62, Noida (UP) India 201 307 www.jbs.ac.in…

    • 3933 Words
    • 16 Pages
    Satisfactory Essays
  • Good Essays

    * Nemingha. 2010. India’s Cotton Textile Industry [Online]. Available at: http://hubpages.com/hub/Indias-Cotton-Textile-Industry [Accessed: 23 September 2010]…

    • 12211 Words
    • 49 Pages
    Good Essays
  • Powerful Essays

    The Indian textile industry is one of the largest and oldest sectors in the country and among the most important in the economy in terms of output, investment and employment. The sector employs nearly 35 million people and after agriculture, is the second highest employer in the country. Its importance is underlined by the fact that it accounts for around 4% of Gross Domestic Product, 14% of industrial production, 9% of excise collections, 18% of employment in the industrial sector, and 16% of the country’s total export earnings. In the Textile industry, the Apparel industry is one of the important value chains of the vertical and is India’s second largest industry after IT. At present, it is amongst the fastest growing industry segment and is also the second largest foreign exchange earner for the country. Also the retail segment in India is booming up at a very fast phase.…

    • 1134 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    The Indian garment and fabric industries have several major factors going in their favor, in terms of cost-effectiveness in manufacture and raw material, quick…

    • 3104 Words
    • 13 Pages
    Powerful Essays
  • Satisfactory Essays

    ATextile and apparel is a privileged exports sector in India contributing 30 % of total exports. And it has valid reasons. A long history of fine textiles, easy availability of the finest raw material, natural or manmade, classic weaving, manual or mechanized, labor availability and flexible production capacity; India's textile industry is vertically integrated from raw material to finished product, including fiber production, spinning, knitting and weaving, and apparel manufacture.…

    • 546 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Battese, G. E., & Coelli, T. J. (1988). Prediction of firm-level technical efficiencies with a generalized…

    • 7219 Words
    • 29 Pages
    Powerful Essays
  • Powerful Essays

    Consumer Awarness

    • 4492 Words
    • 18 Pages

    In the globalization, liberalization and privatization era, most of the economic decisions are taken by the market. Though, the government has withdrawn itself from many economic…

    • 4492 Words
    • 18 Pages
    Powerful Essays