A Performance Analysis of High-growth Industries in the Post-reform India

Abstract
This paper attempts to analyze the Technical and Economic Efficiency of four high performing manufacturing industries of India, viz., (i) Paper and paper products, (ii) Publishing, printing and reproduction of recorded media, (iii) Other non-metallic mineral products & (iv) Basic metals, in the post reform period. These four industries have been selected after comparing their growth rates among seventeen major industries with respect to the average industrial performance, which are calculated from ASI two digit level data for over two separate fifteen years span (1981-1995) & (1996-2010) representing the pre and post globalization states. After selecting the industries focus has been placed on their state of technical efficiency at the firm level. Here the analysis is carried out in terms of unit level ASI data and the method applied is the Stochastic Frontier Analysis. The years selected are 2003-04 and 2008-09. At the next step only the technically efficient firms have been culled out and an industry-wise analysis of their relative economic efficiency has been presented by considering the Generalized Leontief Production Function and applying Full Information Maximum Likelihood technique.

Keywords: Technical Efficiency, Stochastic Frontier Analysis (SFA), Allocative Efficiency, Generalized Leontief Production Function, Full-information-maximum-likelihood technique, Shadow Prices

https://doi.org/10.37948/ensemble-2020-0202-a020