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DETERMINING THE EFFICIENCY OF INVESTMENT ALLOCATION IN INDIAN MANUFACTURING SECTOR |
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| รหัสดีโอไอ | |
| Creator | Niranjan R. |
| Title | DETERMINING THE EFFICIENCY OF INVESTMENT ALLOCATION IN INDIAN MANUFACTURING SECTOR |
| Contributor | MANJAPPA D. HOSAMANE |
| Publisher | University of the Thai Chamber of Commerce |
| Publication Year | 2559 |
| Journal Title | UTCC International Journal of Business and Economics |
| Journal Vol. | 8 |
| Journal No. | 2 |
| Page no. | 5-20 |
| Keyword | Private Investment, Manufacturing, Efficiency, Economic Reforms |
| URL Website | http://ijbejournal.com/ |
| Website title | ijbejournal |
| ISSN | 1906-5582 (paper) |
| Abstract | Investment plays a prime role in driving economic growth and development; it augments the productive capacity, productivity and efficiency in the economy and enables to produce more output. Private fixed investment; a component of aggregate investment is one of the major determinants of an economy's long-term growth; its increase in relative to GDP contributes higher growth and redirect available resources for expanding future production. It's an ideal indicator in explaining the business cycle oscillations. Over time interest in private investment grew because of its sensitivity to policy environment relative to public investment. It became even more policy relevant in the recent years after initiation of Structural Adjustment Programme (SAP) in several developing countries. The study investigates, whether financial liberalization improved the efficiency with which investment funds are allocated across different industries by using a measure of efficiency index developed by Galindo, A, Fabio Schiantarelli and Andrew Weiss (2005) for Indian manufacturing industries for the period 1990-2007. It measured whether investment funds are going to industries with a higher marginal return to capital in pre liberalisation and post liberalisation periods. By comparing the mean values of efficiency index in the pre- and postliberalisation period the study finds that the efficiency index has improved for many(althoughnotfor all) industries in the sample, following the introduction of economic reforms. |
