An Empirical Study to Measure the Efficiency of Indian Pharmaceutical Companies During Recession Period Utilizing Data Envelopment Analysis

Abstract

The present study has been undertaken to measure the efficiency of the Indian pharmaceutical companies during the period of recent recession. Data envelopment analysis has been utilized in the paper to measure the efficiency. Input oriented variable return to scale approach has been used in this study. Linear program has been formulated to compute the efficiency and super efficiency scores of the different pharmaceutical companies in Indian scenario. The companies have been ranked according to the scores obtained by them during the period of study. A further attempt has been made in the paper to identify the most important independent variable influencing the efficiency score of the pharmaceutical companies during the recession period.