Organizational Form and Efficiency: Evidence from Indian Sugar Manufacturing

J. OF COMPARATIVE ECONOMICS, Vol. 21 No. 1, August 1995

Posted: 7 Jul 1998

See all articles by Michael J. Ferrantino

Michael J. Ferrantino

Trade Policy Research Forum

Gary D. Ferrier

University of Arkansas - Sam M. Walton College of Business

Carl B. Linvill

Government of the State of Nevada - Nevada State Office of Energy

Abstract

Frontier cost and production functions are used to examine the effects of ownership on intrafirm differences in technical, cost, and allocative efficiency in the Indian sugar processing industry. Cooperatives are found to be as or more efficient than their counterparts. The results suggest that technical and coordination economies of vertical integration provide important advantages for the cooperative form of organization. We also find that seasonal labor is overutilized and permanent labor is underutilized relative to their cost-minimizing proportions. This is possibly a second-best solution in light of employment regulations.

JEL Classification: J43, L66

Suggested Citation

Ferrantino, Michael J. and Ferrier, Gary D. and Linvill, Carl B., Organizational Form and Efficiency: Evidence from Indian Sugar Manufacturing. J. OF COMPARATIVE ECONOMICS, Vol. 21 No. 1, August 1995, Available at SSRN: https://ssrn.com/abstract=7300

Michael J. Ferrantino

Trade Policy Research Forum ( email )

13 Yucca Drive
Fredericksburg, VA Virginia 22405
United States

Gary D. Ferrier (Contact Author)

University of Arkansas - Sam M. Walton College of Business ( email )

BA418, Dept. of Economics
Fayetteville, AR 72701
United States
501-575-6223 (Phone)

Carl B. Linvill

Government of the State of Nevada - Nevada State Office of Energy

NV
United States

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