Measuring productivity growth, efficiency change and technical progress in small scale firms in India during pre and post-reform periods

Abstract

This study examines the productivity, efficiency change and technical progress of small manufacturing firms in Coimbatore, India using Data Envelopment Analysis. Since July 1991, major economic policy changes have been made under an economic reforms programme. The new policies have relaxed or removed many government controls on production capacity, imported capital goods, intermediate inputs and technology. These reforms have altered the economic environment of the country. The results reveal that productivity and technical progress was slightly higher in the pre-reform period than in the post-reform period but technical efficiency is greater in the post-reform period.