Technical Efficiency Analysis of Indian IT Industry: A Panel Data Stochastic Frontier Approach

IF 1.3 Q1 AREA STUDIES Millennial Asia Pub Date : 2022-05-22 DOI:10.1177/09763996221082199

N. A. Bhat, S. Kaur

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Abstract

Globalization and the development of modern technologies have led to the emergence of service trade. The success of Indian information technology (IT) has changed perception of globe about India and has captured the attention of the globe as it seems a paradox that a developing economy is emerging as a global hub for software exports. In the past three decades, the contribution of the Indian IT industry to national income, employment generation and offsetting the current account deficit is remarkable. In this consideration, the present study is an attempt to analyse the technical efficiency of the IT industry of India during the period 2000–2016 by applying panel data stochastic frontier analysis approach. The study reveals that foreign capital, age and profit ratio have a significant impact on mitigating the technical inefficiency of the IT industry while the research and development (R&D) expenditure has turned out statistically insignificant in determining efficiency. Indian IT industry is mostly driven by service exports which are not survivable in the long run. The study suggests that the Indian IT industry has to transform itself from low value-added to high value-added, from service-driven to product-driven.

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印度IT产业技术效率分析:面板数据随机前沿方法

全球化和现代技术的发展导致了服务贸易的出现。印度信息技术（IT）的成功改变了全球对印度的看法，并引起了全球的关注，因为发展中经济体正在成为全球软件出口中心，这似乎是一个悖论。在过去的三十年里，印度IT行业对国民收入、创造就业和抵消经常账户赤字的贡献是显著的。考虑到这一点，本研究试图通过应用面板数据随机前沿分析方法来分析印度IT行业在2000-2016年期间的技术效率。研究表明，外资、年龄和利润率对降低IT行业的技术效率有显著影响，而研发支出在决定效率方面在统计上并不重要。印度IT行业主要由服务出口驱动，从长远来看，服务出口是无法生存的。研究表明，印度IT行业必须从低附加值向高附加值转变，从服务驱动向产品驱动转变。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Millennial Asia AREA STUDIES-

CiteScore

4.50

自引率

12.50%

发文量

期刊介绍： Millennial Asia: An International Journal of Asian Studies is a multidisciplinary, refereed biannual journal of the Association of Asia Scholars (AAS)–an association of the alumni of the Asian Scholarship Foundation (ASF). It aims to encourage multifaceted, multidisciplinary and interdisciplinary research on Asia, in order to understand its fast changing context as a growth pole of global economy. By providing a forum for Asian scholars situated globally, it promotes dialogue between the global academic community, civil society and policy makers on Asian issues. The journal examines Asia on a regional and comparative basis, emphasizing patterns and tendencies that go beyond national borders and are globally relevant. Modern and contemporary Asia has witnessed dynamic transformations in cultures, societies, economies and political institutions, among others. It confronts issues of collective identity formation, ecological crisis, rapid economic change and resurgence of religion and communal identifies while embracing globalization. An analysis of past experiences can help produce a deeper understanding of contemporary change. In particular, the journal is interested in locating contemporary changes within a historical perspective, through the use of interdisciplinary and multidisciplinary approaches. This way, it hopes to promote comparative studies involving Asia’s various regions. The journal brings out both thematic and general issues and the thrust areas are: Asian integration, Asian economies, sociology, culture, politics, governance, security, development issues, arts and literature and any other such issue as the editorial board may deem fit. The core fields include development encompassing agriculture, industry, regional trade, social sectors like health and education and development policy across the region and in specific countries in a comparative perspective.