Perspectives on the Sources of Heterogeneity in Indian Industry
The authors examine technical efficiency variation across four industrial sectors in India, using a stochastic production frontier technique. The results are comparable to technical efficiency distribution patterns obtained in other countries. The...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2000/11/729386/perspectives-sources-heterogeneity-indian-industry http://hdl.handle.net/10986/19772 |
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okr-10986-197722021-04-23T14:03:44Z Perspectives on the Sources of Heterogeneity in Indian Industry Lall, Somik V. Rodrigo, G. Chris ACCOUNTING ACCOUNTING PRINCIPLES ALLOCATIVE EFFICIENCY CDF CITY SIZE CLOSED ECONOMY COMPARATIVE ADVANTAGE CONSUMERS CRIME DISECONOMIES ECONOMIC ACTIVITY ECONOMIC GEOGRAPHY ECONOMIES OF SCALE ELASTICITY EMPIRICAL ANALYSIS EMPLOYMENT EXPORTS EXTERNALITIES FOREIGN COMPETITION FOREIGN EXCHANGE HUMAN CAPITAL IMPERFECT COMPETITION INDUSTRIAL SECTOR INEFFICIENCY INNOVATION INTERMEDIATE INPUTS ISOLATION LABOR FORCE LABOR PRODUCTIVITY MANAGERIAL EFFICIENCY MANAGERS MANUFACTURING INDUSTRY MARKET COMPETITION MARKETING METROPOLITAN AREAS POLLUTION PRIVATE SECTOR PRODUCERS PRODUCT MARKETS PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION PROCESSES PRODUCTION TECHNOLOGY PRODUCTIVITY PROFITABILITY PUBLIC POLICY PUBLIC SECTOR RAPID INDUSTRIALIZATION REGULATORY FRAMEWORK SCALE EFFECTS SUBSIDIARIES SUBSIDIARY TECHNOLOGICAL CHANGE TOTAL FACTOR PRODUCTIVITY TRANSPORT URBANIZATION VALUE ADDED The authors examine technical efficiency variation across four industrial sectors in India, using a stochastic production frontier technique. The results are comparable to technical efficiency distribution patterns obtained in other countries. The authors examine heterogeneity in firm-level efficiency against internal, firm-level characteristics and against external characteristics (industry and location). The results suggest that managerial effectiveness significantly influences efficiency and that considerable benefits derive from location within established industrial clusters for particular industries. The methodology and findings indicate that the study of industry-specific technical efficiency patterns is a useful analytical tool for tracking domestic firms' response to liberalization and the advance of market forces. An important policy implication of the authors' results: There is considerable room for efficiency gains through better organization and management of production processes and improved supply chain management, even in the highly organized corporate sector. These gains could be achieved by purely internal learning processes with no extra investment in physical plant or equipment, or with the help of outside consultants, or through business alliances with partners from industrial countries (a rising trend). The results also show that greater technical efficiency correlates with better energy use and higher investments in plant management. How firms can be induced to undertake such investments in the "software" of production is an important issue. Liberalization and globalization are likely to bring significant productivity gains even in low-technology industries as managers gear up to meet the challenges of competition. 2014-08-27T18:40:44Z 2014-08-27T18:40:44Z 2000-11 http://documents.worldbank.org/curated/en/2000/11/729386/perspectives-sources-heterogeneity-indian-industry http://hdl.handle.net/10986/19772 English en_US Policy Research Working Paper;No. 2496 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia India |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ACCOUNTING PRINCIPLES ALLOCATIVE EFFICIENCY CDF CITY SIZE CLOSED ECONOMY COMPARATIVE ADVANTAGE CONSUMERS CRIME DISECONOMIES ECONOMIC ACTIVITY ECONOMIC GEOGRAPHY ECONOMIES OF SCALE ELASTICITY EMPIRICAL ANALYSIS EMPLOYMENT EXPORTS EXTERNALITIES FOREIGN COMPETITION FOREIGN EXCHANGE HUMAN CAPITAL IMPERFECT COMPETITION INDUSTRIAL SECTOR INEFFICIENCY INNOVATION INTERMEDIATE INPUTS ISOLATION LABOR FORCE LABOR PRODUCTIVITY MANAGERIAL EFFICIENCY MANAGERS MANUFACTURING INDUSTRY MARKET COMPETITION MARKETING METROPOLITAN AREAS POLLUTION PRIVATE SECTOR PRODUCERS PRODUCT MARKETS PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION PROCESSES PRODUCTION TECHNOLOGY PRODUCTIVITY PROFITABILITY PUBLIC POLICY PUBLIC SECTOR RAPID INDUSTRIALIZATION REGULATORY FRAMEWORK SCALE EFFECTS SUBSIDIARIES SUBSIDIARY TECHNOLOGICAL CHANGE TOTAL FACTOR PRODUCTIVITY TRANSPORT URBANIZATION VALUE ADDED |
| spellingShingle |
ACCOUNTING ACCOUNTING PRINCIPLES ALLOCATIVE EFFICIENCY CDF CITY SIZE CLOSED ECONOMY COMPARATIVE ADVANTAGE CONSUMERS CRIME DISECONOMIES ECONOMIC ACTIVITY ECONOMIC GEOGRAPHY ECONOMIES OF SCALE ELASTICITY EMPIRICAL ANALYSIS EMPLOYMENT EXPORTS EXTERNALITIES FOREIGN COMPETITION FOREIGN EXCHANGE HUMAN CAPITAL IMPERFECT COMPETITION INDUSTRIAL SECTOR INEFFICIENCY INNOVATION INTERMEDIATE INPUTS ISOLATION LABOR FORCE LABOR PRODUCTIVITY MANAGERIAL EFFICIENCY MANAGERS MANUFACTURING INDUSTRY MARKET COMPETITION MARKETING METROPOLITAN AREAS POLLUTION PRIVATE SECTOR PRODUCERS PRODUCT MARKETS PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION PROCESSES PRODUCTION TECHNOLOGY PRODUCTIVITY PROFITABILITY PUBLIC POLICY PUBLIC SECTOR RAPID INDUSTRIALIZATION REGULATORY FRAMEWORK SCALE EFFECTS SUBSIDIARIES SUBSIDIARY TECHNOLOGICAL CHANGE TOTAL FACTOR PRODUCTIVITY TRANSPORT URBANIZATION VALUE ADDED Lall, Somik V. Rodrigo, G. Chris Perspectives on the Sources of Heterogeneity in Indian Industry |
| geographic_facet |
South Asia India |
| relation |
Policy Research Working Paper;No. 2496 |
| description |
The authors examine technical efficiency
variation across four industrial sectors in India, using a
stochastic production frontier technique. The results are
comparable to technical efficiency distribution patterns
obtained in other countries. The authors examine
heterogeneity in firm-level efficiency against internal,
firm-level characteristics and against external
characteristics (industry and location). The results suggest
that managerial effectiveness significantly influences
efficiency and that considerable benefits derive from
location within established industrial clusters for
particular industries. The methodology and findings indicate
that the study of industry-specific technical efficiency
patterns is a useful analytical tool for tracking domestic
firms' response to liberalization and the advance of
market forces. An important policy implication of the
authors' results: There is considerable room for
efficiency gains through better organization and management
of production processes and improved supply chain
management, even in the highly organized corporate sector.
These gains could be achieved by purely internal learning
processes with no extra investment in physical plant or
equipment, or with the help of outside consultants, or
through business alliances with partners from industrial
countries (a rising trend). The results also show that
greater technical efficiency correlates with better energy
use and higher investments in plant management. How firms
can be induced to undertake such investments in the
"software" of production is an important issue.
Liberalization and globalization are likely to bring
significant productivity gains even in low-technology
industries as managers gear up to meet the challenges of competition. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Lall, Somik V. Rodrigo, G. Chris |
| author_facet |
Lall, Somik V. Rodrigo, G. Chris |
| author_sort |
Lall, Somik V. |
| title |
Perspectives on the Sources of Heterogeneity in Indian Industry |
| title_short |
Perspectives on the Sources of Heterogeneity in Indian Industry |
| title_full |
Perspectives on the Sources of Heterogeneity in Indian Industry |
| title_fullStr |
Perspectives on the Sources of Heterogeneity in Indian Industry |
| title_full_unstemmed |
Perspectives on the Sources of Heterogeneity in Indian Industry |
| title_sort |
perspectives on the sources of heterogeneity in indian industry |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2000/11/729386/perspectives-sources-heterogeneity-indian-industry http://hdl.handle.net/10986/19772 |
| _version_ |
1764440605885202432 |