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MNEs, Strategic Alliances and Efficiency of Firms

This paper traces trends in the efficiency of firms in the Indian manufacturing sector and investigates the factors that affect it in the era of liberalisation. The DEA approach has been used to estimate the efficiency of firms belonging to 27 industry groups of the Capitaline Ole? database for the years 1991 to 2001. The results indicate that average efficiency declined in the period 1991 to 1996 and improved thereafter, although it did not reach 1991 levels, even in 2001.

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