2012Journal of Economic Policy ReformRequires access

Measuring productivity growth, efficiency change and technical progress in small scale firms in India during pre and post-reform periods

V. Pradeep, Jong Rong Chen

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Abstract

This study examines the productivity, efficiency change and technical progress of small manufacturing firms in Coimbatore, India using Data Envelopment Analysis. Since July 1991, major economic policy changes have been made under an economic reforms programme. The new policies have relaxed or removed many government controls on production capacity, imported capital goods, intermediate inputs and technology. These reforms have altered the economic environment of the country. The results reveal that productivity and technical progress was slightly higher in the pre-reform period than in the post-reform period but technical efficiency is greater in the post-reform period.

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What this paper is about

This study examines the productivity, efficiency change and technical progress of small manufacturing firms in Coimbatore, India using Data Envelopment Analysis. Since July 1991, major economic policy changes have been made under an economic reforms programme. The new policies have relaxed or removed many government controls on production capacity, imported capital goods, intermediate inputs and technology. These reforms have altered the economic environment of the country. The results reveal that productivity and technical progress was slightly higher in the pre-reform period than in the post-reform period but technical efficiency is greater in the post-reform period.

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Available abstract

This study examines the productivity, efficiency change and technical progress of small manufacturing firms in Coimbatore, India using Data Envelopment Analysis. Since July 1991, major economic policy changes have been made under an economic reforms programme. The new policies have relaxed or removed many government controls on production capacity, imported capital goods, intermediate inputs and technology. These reforms have altered the economic environment of the country. The results reveal that productivity and technical progress was slightly higher in the pre-reform period than in the post-reform period but technical efficiency is greater in the post-reform period.

Key concepts: Data envelopment analysis, Productivity, Economics, Technical change, Economic reform, Technical progress, Scale (ratio), Capital good

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