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Article
Publication date: 20 March 2023

Vipin Valiyattoor and Anup Kumar Bhandari

A brief review of earlier studies on the productivity scenario of Indian industry shows that most of the studies analysed are confined to either parametric approach or growth…

Abstract

Purpose

A brief review of earlier studies on the productivity scenario of Indian industry shows that most of the studies analysed are confined to either parametric approach or growth accounting approach of measuring productivity. At the same time, the few studies based on the non-parametric [namely, Malmquist productivity index (MPI)] overlook the returns to scale conditions as well as the bias involved in the estimation of distance functions. Given this backdrop, this study aims to provide a robust measure of productivity, which considers the returns to scale assumptions and correct for the bias involved in the estimation of productivity.

Design/methodology/approach

This study empirically tests for the returns to scale that exists in the chemical and chemical products industry in India. The test result suggests that Ray and Desli (1997) approach of MPI is the appropriate one for the present context. Initially, the conventional Ray and Desli (1997) estimation and decomposition of MPI for the period 2001 to 2017 is being used. Subsequently, to correct for the bias in the estimation of efficiency scores used for the estimation of MPI, the bootstrapping algorithm of Simar and Wilson (2007) has been extended into the context of MPI estimation.

Findings

The results from the conventional Malmquist productivity estimates testifies to an improvement of total factor productivity (TFP) in seven out of 16 years under consideration. On the contrary, TFP growth is recorded only in the four years throughout the period after the bias correction. A greater discrepancy between the two measures has been found in the case of scale change factor component of MPI.

Practical implications

The technical change (TC) component positively influences TFP, whereas scale change factor (SCF) deteriorates the TFP condition of this industry. It will be appropriate for these firms to identify and operate under an optimal scale of operation, along with reaping the benefits of technological change. From a methodological perspective, researchers should consider the potential bias that arise in estimation of TFP and use a larger sample whenever possible.

Originality/value

This paper brings in a new perspective to the existing literature on industrial productivity. As against earlier studies, this study empirically tests the returns to scale of the sector under consideration and uses the most appropriate approach to measure productivity. The effect of sampling bias on TFP and its components is analysed.

Details

Indian Growth and Development Review, vol. 16 no. 2
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 29 April 2024

Gargi Sanati and Anup Kumar Bhandari

In the backdrop of an increase in market-based banking activities, this paper aims to study operational efficiency of Indian banking sector during 2009–2010 through 2017–2018…

Abstract

Purpose

In the backdrop of an increase in market-based banking activities, this paper aims to study operational efficiency of Indian banking sector during 2009–2010 through 2017–2018 considering Capital Gain and Gain from Forex Market (as desirable outputs) and Slippage (as undesirable byproducts) simultaneously, along with Advances – a desirable output considered in the traditional banking performance assessment literature. This enables to have an assessment of performance (as captured by the measured efficiency scores) of Indian Banks following an alternative viewpoint about the banking activities. The authors also explain such efficiency scores in terms of bank-specific factors, banking industry competition scenario and interest rate channel.

Design/methodology/approach

Using data envelopment analysis (DEA) method, the authors estimate six alternatives but interlinked operational efficiency scores (TES) of the Indian domestic commercial banks. In the second stage, they explain such TES in terms of bank-specific factors, banking industry competition scenario and interest rate channel.

Findings

The authors observe that the private sector banks as a group outperform those under public ownership. Moreover, although the private sector banks could maintain somewhat consistency in their operational efficiency performance over the sample period, public sector banks clearly show a declining tendency. The second stage econometric estimation results show that the priority sector lending has a negative effect on efficiency. Interestingly, the authors get varying results for the relationship between maturity and efficiency score depending on banks’ strategies on stressed assets management. Furthermore, the analyses result that banks are not so efficient in managing relatively larger-volume loans. It is also observed that banks’ efficiency positively depends on the Credit-to-Deposit (CD) ratio. It is found that the overall operational efficiency of the banks to manage their credit risk portfolio improves with a reduction in the lending rate (LR). However, the interaction of lending activities and capital market shows that with the increase in LR, corporate borrowers may switch to capital market to explore for desired funds, which may induce the banking sector to investment in capital markets and create a positive market sentiment.

Originality/value

Literature, although scanty, is there dealing stressed assets of a bank as some undesirable byproducts of its operational and business activities. However, such literature mostly done within the traditional framework of banking business activities and modern market-based business activities are almost absent in the literature. The authors have done it in the present study.

Details

Indian Growth and Development Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 3 February 2020

Vipin Valiyattoor and Anup Kumar Bhandari

This paper aims to evaluate the performance of basic metals industry in India and analyze its determinants, using data envelopment analysis (DEA) method. It also intends to…

Abstract

Purpose

This paper aims to evaluate the performance of basic metals industry in India and analyze its determinants, using data envelopment analysis (DEA) method. It also intends to compare the results through conventional two-stage and bootstrap-based inferences.

Design/methodology/approach

Considering technical efficiency as a measure of performance, this paper specifically investigates whether the participation of a firm in the global market affects its performance. The conventional two-stage procedure is used to test the export intensity and firm performance nexus. The bootstrap-based algorithms (by Simar and Wilson, 2007) are used to correct the bias and serial correlation issues involved in the conventional approach.

Findings

The result shows a negative relation between export intensity and firm performance while following the conventional procedure. Even after accounting for serial correlation, the relation remains more or less similar to that of conventional analysis. However, a strong negative relation between export intensity and firm performance is not observed in a more reliable inference obtained after correcting for possible bias as well as serial correlation.

Research limitations/implications

This paper is based on cross-sectional analysis, and a more reliable result can be obtained by considering a larger sample and longer period.

Originality/value

This paper shows how the conventional two-stage procedure may result in misleading inferences due to bias in the estimation of efficiency scores and the serial correlation during the second stage inferential analysis. This paper also empirically exemplifies how the double bootstrap DEA procedure can overcome these limitations of the conventional two-stage approach.

Details

Indian Growth and Development Review, vol. 13 no. 3
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 29 July 2021

Mohammad Shahid Zaman and Anup Kumar Bhandari

This paper examines the technical efficiency (TE) of Indian commercial banks during 1998–2015.

Abstract

Purpose

This paper examines the technical efficiency (TE) of Indian commercial banks during 1998–2015.

Design/methodology/approach

This study uses mathematical programming-based data envelopment analysis (DEA) methodology to measure technical efficiency of Indian banks. Further, Simar and Wilson (2007) double bootstrap procedure is applied to examine the determinants of efficiency of the Indian banks, by examining the effects of various bank specific and other contextual variables.

Findings

The results indicate substantial upward bias in the conventional efficiency estimates of the Indian commercial banks. Needless to note, such upward bias is consistent with the theoretical postulates. The bootstrapped regression results show that increasing capital adequacy ratio is positively associated with bank efficiency. The popular belief that non-performing assets have a dampening effect on performance of banks is validated. Among others, ownership category is observed to be an important determining factor of bank efficiency. Specifically, state-owned banks (SOBs) are relatively lagging behind the foreign banks. Moreover, larger banks are observed to have a significantly higher level of efficiency, therefore, recent official policy initiatives toward consolidation of SOBs are validated.

Originality/value

As this study uses Simar and Wilson (2007) bootstrap approach, it enables the authors to have an estimate of the extent of bias in the traditional DEA TE scores. It also helps us drawing consistent inferences by rectifying the problem of serial correlation in the conventional second stage regression in this regard.

Details

Studies in Economics and Finance, vol. 39 no. 4
Type: Research Article
ISSN: 1086-7376

Keywords

Open Access
Article
Publication date: 4 June 2020

Sandesh Thapa, Rakshya Bhandari and Anjal Nainabasti

The purpose of this study was to observe the people’s response regarding rooftop farming in one of the rapidly developing area of Kavrepalanchok district, Dhulikhel, as rooftop…

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Abstract

Purpose

The purpose of this study was to observe the people’s response regarding rooftop farming in one of the rapidly developing area of Kavrepalanchok district, Dhulikhel, as rooftop farming is aimed in solving food security problem in urban area by providing quality materials for nutritional requirements.

Design/methodology/approach

The research design of this study was random sampling survey with replacement techniques as respondents without concrete roof were not selected for the study. This study was aimed at recording the people’s response in one of the most accessible way, which would be easy for interpretation and analysis.

Findings

The major finding was that all of the respondents found rooftop farming beneficial but not all could practice it because of many constraints associated with rooftop farming. Most of them have fear of roof damage, so they are not adopting it. However, the respondents who are practicing rooftop farming find it difficult to manage because of lack of proper knowledge. Planting materials include plastic bags, crates, polythene and many other non-recyclable components.

Originality/value

To the best of the authors’ knowledge, this research is the first ever conducted in their country. Surveys related to rooftop gardening have not been done in the authors’ country till date. This is one of the present needs to improve the urban farming status, thus survey on rooftop farming and solving its constraints is necessary.

Details

Ecofeminism and Climate Change, vol. 1 no. 2
Type: Research Article
ISSN: 2633-4062

Keywords

Article
Publication date: 9 February 2024

Radhika Mitra

Oral health is an integral part of general health. Different population groups have been assessed for oral health status in India, but still, many have been neglected; one such…

Abstract

Purpose

Oral health is an integral part of general health. Different population groups have been assessed for oral health status in India, but still, many have been neglected; one such group is the prisoners. The prison population is a unique and challenging one with many health problems, including poor oral health, which may be due to lack of knowledge about good oral health practices. This study aims to assess effectiveness of oral health education on oral health knowledge, attitude and practices and oral hygiene status among the male prison inmates of central jail in Kolkata, India.

Design/methodology/approach

An interventional study was done among 240 male convicts. The data was elicited using a structured proforma; oral health status was assessed by recording OHI-S index, and the severity of gingivitis was assessed by recording the gingival index. Oral health education was delivered by using audio-visual aid. Oral health knowledge, attitude, practices and oral hygiene and gingival status were reassessed among the inmates before and after dental education at the end of three and six months.

Findings

A significant change in oral health knowledge, attitude and practices was seen, which in turn resulted in an appreciable decrease in the mean gingival index score (1.73 ± 0.382 to 1.20 ± 0.321) and OHI-S (3.31 ± 0.815 to 2.57 ± 0.551) in all the inmates after oral health education program over the period of time.

Originality/value

The oral health education with reinforcement proved to be an effective tool to instil good oral hygiene practices in the inmates.

Details

International Journal of Prison Health, vol. 20 no. 2
Type: Research Article
ISSN: 2977-0254

Keywords

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