Back on the Rails: Competition and Productivity in State-owned Industry / Sanghamitra Das, Kala Krishna, Sergey Lychagin, Rohini Somanathan.

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Das, Sanghamitra

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Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w15976.Publication details: Cambridge, Mass. National Bureau of Economic Research 2010.Description: 1 online resource: illustrations (black and white)Subject(s):

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Abstract: We use a proprietary data set on the floor-level operations at the Bhilai Rail and Structural Mill in India to understand the determinants of changes in plant productivity in 2000-2003. During this period there was a 35 percent increase in output with minimal changes in factors of production, but sizable reductions in production delays. We model interruptions to the production process and find that a large part of these reductions are attributable to training. Our results suggest that specific knowledge-enhancing investments can have very high returns, and that the threat of competition provides powerful incentives to undertake such investments.

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Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w15976 (Browse shelf(Opens below))	Not For Loan

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May 2010.

We use a proprietary data set on the floor-level operations at the Bhilai Rail and Structural Mill in India to understand the determinants of changes in plant productivity in 2000-2003. During this period there was a 35 percent increase in output with minimal changes in factors of production, but sizable reductions in production delays. We model interruptions to the production process and find that a large part of these reductions are attributable to training. Our results suggest that specific knowledge-enhancing investments can have very high returns, and that the threat of competition provides powerful incentives to undertake such investments.