ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

V S RenganathanSubscribe to V S Renganathan

Ownership and Efficiency in Engineering Firms: 1990-91 to 1999-2000

The paper analyses the effect of ownership on efficiency of engineering firms in India in the 1990s, a decade of major economic reforms. Technical efficiency of firms, estimated with help of a stochastic frontier production function, is considered for the analysis. A comparison of technical efficiency is made among three groups of firms in Indian engineering: (i) firms with foreign ownership, (ii) domestically owned private sector firms, and (iii) public sector firms. The results clearly indicate that foreign firms in Indian engineering industry have higher technical efficiency than domestically owned firms. No significant difference in technical efficiency is found between private sector and public sector firms among the domestically owned firms. There are indications of a process of efficiency convergence - the domestically owned firms tending to catch up with foreign owned firms in terms of technical efficiency.

Augmentation of Panchayat Resources

Augmentation of Panchayat Resources Indira Rajaraman O P Bohra V S Renganathan Even if the new tier of local governance mandated by the 73rd Amendment is visualised merely as a shift in the point of delivery of certain functions previously discharged by higher levels of government, so that the problem of fiscal devolution simplifies to one of ensuring a fiscal transfer to match the functional transfer, there has to be some revenue additionality to cover incremental establishment costs. This is particularly so for the rural sector, and is the justification for the limited focus in this paper to panchayats alone. Hut if the intention is improved delivery, the need for additional revenues is even greater.
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