Analyzing investment linkages and efficiency in different sectors of Indian economy

Abstract

The present study utilizes the parametric SFA with panel data to obtain the measures of technical efficiency in different sectors of India at the aggregate and sectoral levels because the SFA enables the simultaneous estimation of investment efficiency and an investment inefficiency effects models so we employ the software STATA Version 12 to measure investment efficiency and linkages. It may be concluded that the planners will have to take the investment linkages and investment efficiency seriously and plan the investment pattern in such a way that the linkages among various sectors can be exploited up to maximum extent and more investment can be attracted to the sectors wherein investment efficiency is low. This may happen if and only if, the agriculture and service sectors will converge to the investment efficiency levels of Indian industry. newline