Cost Structure of the Indian Cement Industry

Abstract

Analyses the structure of costs in the cement, lime and plaster industry of India. Using aggregative data for the period 1960‐61 to 1982‐83 a generalised translog cost function is estimated. It is discovered that (1) this industry has been characterised, by and large, by allocative efficiency; (2) production is characterised by increasing returns to scale; (3) technical progress has been biased against the use of capital; and (4) there exist considerable opportunities for substitution between factors of production. Several policy conclusions of the analysis are also examined.

Citation

Jha, R., Murty, M.N., Paul, S. and Sahni, B.S. (1991), "Cost Structure of the Indian Cement Industry", Journal of Economic Studies, Vol. 18 No. 4. https://doi.org/10.1108/EUM0000000000156