Productivity Growth and Efficiency Differences in Indian Manufacturing Sector: An Inter-State Analysis

2020 ◽  
pp. 43-50
Keyword(s):  
Technical Efficiency ◽  
Productivity Growth ◽  
Manufacturing Sector ◽  
Value Added ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Indian States ◽  
Entire Study ◽  
Indian Manufacturing Sector ◽  
Inter State

ABSTRACT The present study endeavours to analyze the productivity growth and technical efficiency of Indian manufacturing sector both at aggregate and disaggregate inter-state level by taking into account the entire study period of 35 years from 1980-81 to 2014-15 and three distinct sub-periods viz., (i) Pre-reforms period (1980-81 to 1990-91: Period-I) ii) Post-reforms period Phase-I (1991-92 to 2000- 2001: Period-II) and iii) Post- reforms period Phase-II (2001-02 to 2014-15: Period-III).The study utilizes the single output (gross value added) and two inputs (gross fixed capital stock and total employees) framework and employed Data Envelopment Analysis (DEA) approach to compute the total factor productivity growth and technical efficiency scores of sixteen major Indian states. The comparative analysis of pre-reforms and post-reforms period depicted a slower TFP growth in the post-reforms era as compared to the pre-reforms period. Further, a non-parametric decomposition of the Malmquist Productivity Index (MPI) into its two components revealed that both before and after reforms, technological progress rather than technical efficiency change contributed more towards the productivity growth of manufacturing sector of these Indian states.

Intellectual capital and bank productivity in emerging markets: evidence from Ghana

2016 ◽  
Vol 54 (3) ◽  
Author(s):  
Abdul Latif Alhassan ◽  
Nicholas Asare
Keyword(s):  
Regression Analysis ◽  
Emerging Markets ◽  
Intellectual Capital ◽  
Productivity Growth ◽  
Design Methodology ◽  
Emerging Market ◽  
Value Added ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Practical Implications

Purpose This paper examines the effect of intellectual capital on bank productivity in an emerging market in Africa. Design/methodology/approach The Malmquist Productivity Index is employed to estimate productivity growth of 18 banks in Ghana from 2003 to 2011 while the Value Added Intellectual Coefficient is used to measure bank intellectual capital performance. The panel-corrected standard errors estimation technique is used to estimate a panel regression model with Malmquist Productivity Index as the dependent variable. Bank market concentration and bank size are controlled for in the regression analysis. Findings We find productivity growth to be largely driven by efficiency changes compared to technological changes. The results from the regression analysis indicate that Value Added Intellectual Coefficient has a positive effect on the productivity of banks in Ghana. We also find human capital efficiency and capital employed efficiency as the components of Value Added Intellectual Coefficient that drive productivity growth in the banking industry. Bank size and industry concentration are also identified as significant drivers of productivity in the market. Practical implications The study’s findings support investments in intellectual capital as a means of improving the performance of banks in emerging markets Originality/value To the best of our knowledge, this is the first study to empirically examine the relationship between intellectual capital and productivity in an emerging banking market in Africa.

Stochastic Frontier Analysis and Measurement of Productivity and Technical Efficiency of Indian Manufacturing Sector

2017 ◽  
Vol 5 (1) ◽  
pp. 52-69
Author(s):  
Manoj Kumar
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Manufacturing Sector ◽  
Stochastic Frontier ◽  
Value Added ◽  
Frontier Analysis ◽  
Use Of Resources ◽  
Plant Level ◽  
Indian Manufacturing Sector ◽  
Factor Inputs

It is generally believed the structural reforms that usher in competition and force companies to become more efficient were introduced later in India following the macroeconomic crisis in 1991. However, whether or not the post-1991 growth is an outcome of more efficient use of resources or greater use of factor inputs, especially capital, remains an open empirical question. In this article the author uses plant-level data from 1990 and 2015 to address this question. The results indicate that while there was an increase in the productivity of factor inputs during the 1990s, most of the growth in value added is explained by growth in the use of factor inputs. The author also finds that median technical efficiency declined in all but one of the industries between the two years, and change in technical efficiency explains a very small proportion in the change in gross value added.

The Relationship between Intellectual Capital and Banks' Productivity in Pakistan

2021 ◽  
pp. 158-169
Author(s):  
Muhammad Asim Afridi ◽  
Imran Khan ◽  
Muddassar Khan
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Productivity Growth ◽  
Banking Sector ◽  
Value Added ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Structural Capital ◽  
Capital Efficiency ◽  
The Impact

The performance of banks has been widely researched using accounting ratios, Tobin�s Q and market returns and less emphasis has been given to productivity measures. The productivity growth of banks is captured through Malmquist Productivity Index (MPI). The study then investigates the impact of intellectual capital on the productivity of banks in Pakistan. Value-added The intellectual Coefficient (VAIC) approach is employed to examine the intellectual capital of banks. Data is obtained from annual reports of 20 banks listed on the Pakistan Stock Exchange for 10 years (2007-2016). The panel corrected standard error approach is used for estimating the panel regression model. The findings provide evidence that the VAIC, human capital efficiency (HCE) and structural capital efficiency (SCE) has a positive impact on productivity growth (MPI). On the other hand, capital employed efficiency (CEE) has no significant impact on productivity growth. The VAIC approach may be useful for the banks and policymakers in a knowledge economy to integrate the intellectual capital in the decision-making process. Our results also suggest that banks in Pakistan shall increase spending on intellectual capital particularly on human capital and structural capital to elevate the intellectual capital of banks and subsequently get benefits in terms of increased productivity Keywords: Intellectual capital; Value added intellectual coefficient (VAIC); Malmquist productivity Index; Pakistan banking sector

AGRICULTURAL TOTAL FACTOR PRODUCTIVITY CHANGES IN THE NEW AND THE OLD EUROPEAN UNION MEMBERS

2015 ◽  
Author(s):  
Tomasz KIJEK ◽  
Anna NOWAK ◽  
Armand KASZTELAN ◽  
Artur KRUKOWSKI
Keyword(s):  
European Union ◽  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Factor Productivity ◽  
Technological Changes ◽  
Total Productivity ◽  
The Eu

The aim of this study was the evaluation of agricultural total factor productivity changes between new member countries which have acceded to EU after 2004 and so-called ‘old 15’ EU members. The analysis covered the years 2007–2013. The study is based on Malmquist productivity index divided into technological change and changes in technical efficiency. The results showed a slight increase in the agricultural total factor productivity in the EU countries in the years 2007–2013 (0.1 %, which mainly resulted from a slight increase in technical efficiency in agriculture(0.4 % ), while at the same time adverse technological changes. Among all the countries of the ‘old 15’, only Denmark, the Netherlands, Finland, United Kingdom and Sweden reported increased index of productivity. In the group of countries that joined the EU after 2004, the total productivity growth took place in such countries as Bulgaria, Cyprus, Czech Republic, Malta, Slovakia and Hungary. The reason for this increase was primarily changes in technical efficiency.

Does TRIPS Drive to Productivity Growth in Indian Pharmaceutical Industry

Paradigm ◽  
2017 ◽  
Vol 21 (2) ◽  
pp. 211-228
Author(s):  
Jaswinder Singh ◽  
Parminder Singh
Keyword(s):  
Pharmaceutical Industry ◽  
Productivity Growth ◽  
Technological Progress ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Potential Productivity ◽  
Entire Study ◽  
Pharmaceutical Firms ◽  
The Impact ◽  
Indian Pharmaceutical Industry

This article endeavours to analyse the inter-firm variations in total factor productivity growth (TFPG) of Indian pharmaceutical industry during the pre-Trade-Related Intellectual Property Rights (TRIPS) and post-TRIPS period by using non-parametric Malmquist productivity index (MPI). For analysis purpose, data for 30 major Indian pharmaceutical firms have been culled out from the various reports of the Centre for Monitoring Indian Economy (CMIE) during the period of 1991–2011. The empirical results reveal that the TFPG of the 30 major Indian pharmaceutical firms recorded to be 0.02 per cent and both the technological progress and efficiency change are equally contributing to the TFPG of the firms during entire study and pre-TRIPS period. It has been observed that TFPG has marginally regressed by 0.04 per cent in the post-TRIPS period and the negative growth of the average TFPG was contributed by technical inefficiency, whereas the positive technological progress helps to cover the impact of inefficiencies on TFPG. However, the growth of efficiency remains negative throughout the study period, which has been contributed both by the scale inefficiency and by the pure inefficiency, whereas the technological progress has a favourable impact on the productivity growth of the industry during the post-TRIPS period. Therefore, it can be inferred that the managerial, technical and scale inefficiencies in Indian pharmaceutical industry should be checked in order to operate at optimal scale and achieve potential productivity growth in the post-TRIPS period.

scholarly journals Characterizing the Difference between Indirect and Direct CO2 Emissions: Evidence from Korean Manufacturing Industries, 2004–2010

2018 ◽  
Vol 10 (8) ◽  
pp. 2711 ◽  
Author(s):  
Sinwoo Lee ◽  
Dong-Woon Noh ◽  
Dong-hyun Oh
Keyword(s):  
Carbon Emissions ◽  
Productivity Growth ◽  
Manufacturing Sector ◽  
Manufacturing Industries ◽  
Productivity Index ◽  
End User ◽  
Shipbuilding Industry ◽  
Industrial Sectors ◽  
Green Productivity ◽  
The Difference

This study measures and decomposes green productivity growth of Korean manufacturing industries between 2004 and 2010 using the Malmquist-Luenberger productivity index. We focus on differences in the measures of productivity growth by distinguishing carbon emissions from either end-user industries or the electricity generation industry. Empirical results suggest three main findings. First, the efficiency of total emissions is higher than that of direct emissions except for the shipbuilding industry. Second, green productivity in the manufacturing sector increased during the study period. Finally, green productivity depends on the indirect emissions of each industry. These results indicate that policymakers need to deliberately develop policy tools for mitigating carbon emissions of the manufacturing industrial sectors based on our empirical findings.

scholarly journals A DEA Resampling Past-Present-Future Comparative Analysis of the Food and Beverage Industry: The Case Study on Thailand vs. Vietnam

Mathematics ◽  
2020 ◽  
Vol 8 (7) ◽  
pp. 1140 ◽  
Author(s):  
Chia-Nan Wang ◽  
Minh Nhat Nguyen ◽  
Anh Luyen Le ◽  
Hector Tibo
Keyword(s):  
National Income ◽  
Value Added ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Productivity Change ◽  
Data Envelopment ◽  
Beverage Industry ◽  
Food And Beverage Industry ◽  
Food And Beverage ◽  
Research Findings

The food and beverage industry plays a significant role in the economic development of developing and emerging countries in Asia through an immense contribution to the national income, employment, value-added inducement, and foreign exchange earnings. Among the developing countries in Asia, Thailand and Vietnam have recently experienced a significant growth in the industry due to their many advantages. However, the nascent stage of this industry was found to be lacking sustainable competitiveness in both countries. Therefore, this study aims to evaluate and forecast the performance efficiency of the food and beverage industry in Thailand and Vietnam to understand how efficient the food and beverage industry to these countries is and formulate suggestions to improve their productivity in accordance with the research findings. To achieve the research objectives, the resampling method in the data envelopment analysis is applied to measure and forecast the efficiency of 20 Vietnamese companies and 20 Thailand firms over the period of 2016 to 2023. The Malmquist productivity index is deployed to calculate the efficiency change over observed periods. The results reveal that Vietnam is found to have a higher efficiency than Thailand due to the outstanding performance of one company but have performed quite poorly due to low scores in technical and productivity change. The findings of this research can give useful information and practical suggestions to improve performance for inefficient companies as well as enhance competitiveness of the efficient companies trying to operate and reach global markets.

scholarly journals Performance Assessment Based on the Relative Efficiency of Indian Opencast Coal Mines Using Data Envelopment Analysis and Malmquist Productivity Index

Energies ◽  
2020 ◽  
Vol 13 (18) ◽  
pp. 4902
Author(s):  
Biswaranjita Mahapatra ◽  
Chandan Bhar ◽  
Sandeep Mondal
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Primary Source ◽  
Efficiency Score ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Significant Difference ◽  
Using Data

Coal is the primary source of energy in India. Despite being the second-largest coal-producingcountry, there exists a significant difference in demand and production in India. In this study, the relativeefficiency of twenty-eight selected opencast mines from a large public sector undertaking coal companyin India for 2018–2019 was assessed and ranked by using data envelopment analysis (DEA). This studyused input-oriented DEA with efficiency decomposition to pure technical efficiency, technical efficiency,and scale efficiency. The result showed that 25% and 36% of mines were efficient in technical efficiencyand pure technical efficiency, respectively, whereas the eight mines scale efficiency was inefficient witha decreasing return to scale. Further, in this study, theMalmquist Productivity Index (MPI)was employedto measure the efficiency of the selected mines for three consecutive years (2016–2017 to 2018–2019).The result shows that in only three mines the efficiency is continuously improving from 2016–2017 to2018–2019, whereas in more than 20% of mines the efficiency score is decreasing. Comparing theMPIefficiency and productivity assessment throughout the years, changes in innovation and technology areincreasing from 2017–2018 to 2018–2019. Finally, the study concluded with a comprehensive evaluationof each variable with mines performance. The author formulated the strategies, which in turn help coalprofessionals to improve the efficiency of the mine.

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