Corporate Ownership and the Technical and Scale Efficiency of Pharmaceutical Firms in India - Empirical Evidence
Languages of publication
In the existing literature, the theoretical models suggest that foreign-owned firms perform better than domestic firms and that private sector firms perform better than public sector firms. The present study is a modest attempt in this regard to empirically test and compare the differences in the technical and scale efficiencies of 36 public limited companies, private sector firms and foreign firms belonging to the pharmaceutical industry of India using the DEA model. The analysis shows that overall technical efficiency was different in the case of private domestic and public sector firms in the year 1990, i.e., the pre-reform period. The difference was also significant in the case of private foreign and public sector firms, though it was not significant in the case of private domestic and private foreign firms in the pre-reform period. However, in the subsequent post-reform years, there were no significant differences.
- Aitken, B. J., Harrison, A. E. 1999. Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela, American Economic Review 89(3): 605-618.[Crossref]
- Alfero, L., A. Chanda, S. Kalemli-Ozcan and, S. Sayek, 2003. FDI and Economic Growth: The Role of Local Financial Markets. Journal of International Economics 64: 89-112.
- Barbose, N. and Louri, H. 2005. Corporate Performance, Does Ownership Matter? A Comparison of Foreign and Domestic-Owned Firms in Greece and Portugal. Review of Industrial Organization 27: 73-102.
- Bernard, A. B. and Bradford, J. J. 2004. Exporting and Productivity in the US. Oxford Review of Economic Policy 20(3): 343-357.[Crossref]
- Barros, C. P. and Mascarenhas, M. J. 2005. Technical and Allocative Efficiency in a Chain of Small Hotels. Hospitality Management 24(3): 415-36.[Crossref]
- Blomstrom, M. 1990. Foreign Investment and Spillovers. Routledge. London.
- Blomstrom, M., R. E. Lipsey, and, M. Zejan. 1992. What Explains Developing Country Growth. NBER Working Paper Series No. 4132.
- Borensztein, E. De Gregorio, J. and Lee, J-W. 1998. How Does Foreign Direct Investment Affect Economic Growth? Journal of International Economics. Elseveer, 45(1): 115-135.[Crossref]
- Charnes, A., Cooper, W. W., Lewin, A. Y. and Secford, L. M. Ed. 1994. Data Envelopment Analysis: Theory, Methodology and Applications: Dordrecht Kluwer Academic Publishers.[WoS]
- Chhibber, P. K. and Majumdar, S. K. 1997. Foreign Ownership and Profitability: Property Rights, Strategic Control and Corporate Performance in Indian Industry. William Davidson Institute Working Papers Series 64, William Davidson Institute at the University of Michigan Stephen M. Ross Business School.
- Durham, J. B. 2003. Foreign Portfolio Investment, Foreign Banks Lending and Economic Growth. International Finance Discussion Papers 757, Board of Governors of the Federal Reserve System (U.S).
- Durham, J. B. 2004. Absorptive Capacity and the Effects of Foreign Direct Investment and Equity Foreign Portfolio Investment on Economic Growth, European Economic Review 48: 285-306.
- Farrell, M. J. 1957. The Measurement of Productive Efficiency. Journal of the Royal Statistical Society Serves. A. 120(3): 253-290.[Crossref]
- Goldar, B. N., Ranganathan, V. S. and Banga, R. 2003. Ownership and Efficiency in Engineering Firms in India, 1990-91 to 1999-2000 Working Paper No. 115, Indian Council for Research on International Economic Relations: New Delhi.
- Hallward-Driemeier, M. Iarossi, G. and Sokoloff, K. L. 2002. Exports and Manufacturing Productivity in East Asia: A Comparative Analysis with Firm-Level Data. NBER Working Paper 8894. National Bureau of Economic Research.
- Helpman, E., M. J. Melitz and, S. R. Yeaple. 2004. Export Versus FDI with Heterogeneous Firms. The American Economic Review 94(1): 300-317.[Crossref]
- Hill, H. 1988. Foreign Investment and Industrialization in Indonesia. Oxford University Press, Singapore.
- Kathuria, V. 2000. Liberalization, FDI and Productivity Spillover: An Analysis of Indian Manufacturing Firms. Oxford Economic Papers 54: 688-718.
- Konings, J. and Murphey, A. 2001. Do Multinational Enterprises Substitute Parent Jobs for Foreign Ones? Evidence from Firm Level Panel Data. William Davidson Institute Working Papers Series 371. William Davidson Institute at the University of Michigan, Stephen M. Ross Business School.
- Oguchi, N. 2002. Productivity of Foreign and Domestic Firms in Malaysian Manufacturing Industry. Asian Economic Journal. 16(3): 215-228.[Crossref]
- Pandit, B. L. and Siddharthan, N. S. 2003. MNEs and Market Valuation of Firms: a Cross-Sectional Study of Indian Electrical and Electric Goods Manufacturing Firms. Applied Economics 35(6): 675-681.[Crossref]
- Ramstetter, E. D. 1999. Comparisons of Foreign Multinational and Local Firms in Asian Manufacturing Over Time. Asian Economic Journal. 13(3): 163-203.[Crossref]
- Sjoholm, F. 1998. Joint Ventures, Technology Transfer and Spillovers: Evidence from Indonesian Establishment Data. In Economic Planning Agency, ed. Foreign Direct Investment in Asia, Papers and Proceedings of an International Symposium, October 22-23, Economic Planning Agency, Tokyo. 587-616.
- Takii, S. and Ramstetter, E. D. 2000. Foreign Multinationals in Indonesian Manufacturing 1985-1998: Shares, Relative Size and Relative Labour Productivity Working Paper 2000-18. International Centre for the Study of East Asian Development. Kitakyushu.
- Takii, S. 2002. Productivity Differentials between Local and Foreign Plants in Indonesian Manufacturing, 1995. Working Paper 2002, International Centre for the Study of East Asian Development. Kitakyushu.
Publication order reference