Title: Efficiency and productivity: an empirical analysis of public sector buses in India

Authors: Ishita Ganguli Tripathy

Addresses: Ministry of Finance, Government of India New Delhi, India

Abstract: This paper examines the technical efficiency and productivity of 31 Indian public sector units, which own buses and provide passenger road transport services. Using Malmquist Productivity Index, the study finds that during the period 2006-2007 to 2012-2013, productivity of these units enhanced due to technological augmentation and improvement in technical efficiency. The study adds to the limited literature by analysing the determinants of technical efficiency of these units, using both two-stage and three-stage data envelopment analyses. The analysis identifies age of the buses, their vehicle productivity and their fuel efficiency as important determinants of technical efficiency. These findings are important for these units for formulating appropriate action plans to efficiently employ their resources.

Keywords: technical efficiency; vehicle productivity; data envelopment analysis; DEA; Malmquist productivity index; MPI; state road transport undertakings; SRTUs; India; public transport; public buses; fuel efficiency; vehicle age.

DOI: 10.1504/IJEME.2015.072560

International Journal of Engineering Management and Economics, 2015 Vol.5 No.3/4, pp.224 - 244

Accepted: 13 Apr 2015
Published online: 19 Oct 2015 *

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