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Volume 8, No. 2,
August 2009
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Comparing
the Efficiency and Productivity of the Indian
Pharmaceutical Firms: A Malmquist-Meta-Frontier
Approach
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Mainak
Mazumdar*
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Centre for Economic Studies and Policy, Institute for
Social and Economic Change, Bangalore, India
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Meenakshi
Rajeev
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Centre for Economic Studies and Policy, Institute for
Social and Economic Change, Bangalore, India
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Abstract
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This paper examines the technical
efficiency, technological gap ratio, and productivity
change of Indian pharmaceutical firms across different
groups. The groups are formed based on size, strategies,
and product varieties. The analysis indicates that
vertically integrated firms that produce both bulk drug
and formulation exhibit higher technological innovation
and efficiency. However, in contrast with popular
belief, the analysis reveals that increased export
earnings do not necessarily lead to higher efficiency.
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Key words
:
data envelopment analysis; efficiency;
global frontier; group frontier; pharmaceutical;
technological gap ratio; Malmquist productivity index
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JEL classification
:
C14;
C61; D21; L6
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