Efficiency, productivity dynamics and determinants of productivity growth in Indian telecommunication industries: An empirical analysis

Sahoo, Dhirendra Kumar and Sahoo, Pradipta Kumar (2022) Efficiency, productivity dynamics and determinants of productivity growth in Indian telecommunication industries: An empirical analysis. Journal of Public Affairs, 22 (1). pp. 1-8. ISSN 1472-3891

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Abstract

This paper examines the efficiency and productivity dynamics of the Indian telecommunication sector with the help of non-parametric Data Envelopment Analysis approach for the period 2008–2015. The study finds that the year-wise mean Total factor productivity (TFP) growth is positive in 2011 and 2013 only, where the overall TFP growth is negative. From the components of TFP growth, we find that the negative growth of the firm is due to the negative technology change, not due to the change of inefficiency of the firms. However, the mean efficiency score is positive and is backed by a scale efficiency change. Further, from the dynamic-GMM model, the study ascertains that the determinants of TFP growth are positively affected by profit intensity, advertisement intensity, import intensity and capital intensity and negatively affected by the firm's debt ratio in case of Indian telecommunication forms. This finding suggests to the policymaker that by increasing the key determinants, the performance of telecommunication firms can be increased. © 2020 John Wiley & Sons Ltd

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IITH Creators:

IITH Creators	ORCiD

Item Type:

Article

Additional Information:

The authors acknowledge the valuable suggestions and help received from Prof Badri Narayan Rath, Department of Liberal Arts, IIT Hyderabad which improved this paper substantially. Errors if any, are the author's own responsibility.

Uncontrolled Keywords:

Indian telecommunication sector, Data Envelopment Analysis, Total factor productivity (TFP)

Subjects:

Social sciences > Social Sciences Mathematical Methods
Arts > Liberal arts

Divisions:

Department of Liberal Arts

Depositing User:

. LibTrainee 2021

Date Deposited:

14 Jul 2022 09:14

Last Modified:

14 Jul 2022 09:14