Productive Efficiency across Firms

This is a study of the productive efficiency of 21 state road transport undertakings (STUs) in India over 1984-85 to 1996-97. A well known multilateral index procedure is used to compute the growth and relative levels of gross productivity of the STUs and productive efficiency is estimated. We also examine the temporal relationship of the cross-sectional rankings of individual STU's productive efficiency estimates. We find wide disparity among STUs. On an average, small size STUs are more productive, and by and large, and so are Tamil Nadu STUs. The productive efficiency ranks of STUs have remained broadly unchanged over the years.