<abstract xml:lang="en" xmlns="http://www.w3.org/1999/xhtml"><p>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.</p></abstract>

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.

Corporate Ownership and the Technical and Scale Efficiency of Pharmaceutical Firms in India - Empirical Evidence

Punjab School of Economics, Guru Nanak Dev University, India

South East European Journal of Economics and Business

In the existing literature, the theoretical models suggest that foreign-owned firms perform better than domestic firms and that private sector firms perform...

Corporate Ownership and the Technical and Scale Efficiency of Pharmaceutical Firms in India - Empirical Evidence

Published Online: Jun 03, 2011

Page range: 95 - 106

DOI: https://doi.org/10.2478/v10033-010-0019-y

Keywords
Corporate Ownership, Technical Efficiency, Scale Efficiency

This content is open access.

Corporate Ownership and the Technical and Scale Efficiency of Pharmaceutical Firms in India - Empirical Evidence

Published Online: Jun 03, 2011

Page range: 95 - 106

DOI: https://doi.org/10.2478/v10033-010-0019-y

KeywordsCorporate Ownership, Technical Efficiency, Scale Efficiency

This content is open access.

Keywords
Corporate Ownership, Technical Efficiency, Scale Efficiency