Performance analysis of Indian states based on social–economic infrastructural investments using data envelopment analysis
International Journal of Productivity and Performance Management
ISSN: 1741-0401
Article publication date: 12 August 2020
Issue publication date: 2 November 2021
Abstract
Purpose
This study investigates the performance of Indian states based on infrastructural investment in social and economic sectors using data envelopment analysis (DEA). Most of the studies in the literature are based on how different elements of infrastructure such as transport, energy, education, healthcare system affect the economy of different countries/regions. In this study, we consider these elements under two different sub-systems, namely, social and economic infrastructure and measure the cooperative efficiency for competitive growth.
Design/methodology/approach
A four-stage DEA approach is proposed for the analysis of a sample of 28 Indian states for the years 2011, 2013 and 2015 under consideration. First stage calculates the per capita GDP contribution, while stage-2 evaluates the efficiency of investments in social infrastructure followed by the efficiency analysis in economic infrastructure in stage-3. Finally, fourth stage evaluates the co-operative efficiency for the overall performance.
Findings
The findings of three different cases based on population sizes, viz., highly populated, moderately populated and less populated regions suggest that the government can identify the top and poor performers. It also studies the variations in efficiency tally of states using Malmquist indices.
Practical implications
This kind of study will vigilant government and local authorities on the investments made in all the states for social and economic infrastructure and establish a competitive environment among state governments to compete for improved infrastructural growth.
Originality/value
This study is the first of its kind in developing countries like India, which focuses on efficiency analysis using DEA based on two sub-sectors of social–economic infrastructural investments.
Keywords
Acknowledgements
This research work is supported and funded by Industrial Research and Consultancy Centre (IRCC), IIT Bombay, India under the grant no. IRCC/RI/0318–10000994-001.
Citation
Goyal, G. and Dutta, P. (2021), "Performance analysis of Indian states based on social–economic infrastructural investments using data envelopment analysis", International Journal of Productivity and Performance Management, Vol. 70 No. 8, pp. 2258-2280. https://doi.org/10.1108/IJPPM-01-2020-0039
Publisher
:Emerald Publishing Limited
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