A Note on Relative Efficiency of State Transport Undertakings in India During 2000s

Studies in Business and Economics; Volume: 9, Issue: 2; pp. 87-97.

11 Pages Posted: 30 Oct 2014

See all articles by Sanjay Kumar Singh

Sanjay Kumar Singh

Indian Institute of Management Lucknow

Shalini Raghav

Ministry of Agriculture and Farmers Welfare

Date Written: October 30, 2014

Abstract

The main aim of this study is to analyze the level of relative efficiency of State Transport Undertakings (STUs) in India during 2000s. The analysis is based on estimation of a translog cost function using fixed effects model of the panel data method. In the context of this study, the prime advantage associated with this method is that it allows the cost function to be estimated by taking into account the variables peculiar to each STU. We find that, on an average, smaller STUs are more efficient than their larger counterparts. It seems that there is inverse relationship between ranking based on efficiency measures and size. We also found that the STU, which operates with larger route length per bus is more likely to experience a higher level of efficiency. Furthermore, a higher level of utilization of buses and their capacity would lead to a higher level of efficiency in STUs.

Keywords: Intercity Bus Transport, State Transport Undertakings, Efficiency, India

JEL Classification: D24, L32, L38, L92, R40

Suggested Citation

Singh, Sanjay Kumar and Raghav, Shalini, A Note on Relative Efficiency of State Transport Undertakings in India During 2000s (October 30, 2014). Studies in Business and Economics; Volume: 9, Issue: 2; pp. 87-97.. Available at SSRN: https://ssrn.com/abstract=2516617

Sanjay Kumar Singh (Contact Author)

Indian Institute of Management Lucknow ( email )

Lucknow, 226013
India
+91 522 273 6637 (Phone)
+91 522 273 4005 (Fax)

HOME PAGE: http://ganga.iiml.ac.in/~sanjay/

Shalini Raghav

Ministry of Agriculture and Farmers Welfare ( email )

Krishi Bhawan
CS
New Delhi, DC
India

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