THE EFFICIENCY OF FIRMS IN THE UNORGANISED MANUFACTURING SECTOR IN WEST BENGAL

In this paper attempts have been made to calculate the technical efficiency of unorganised manufacturing firms in the state of West Bengal using unit level data of NSSO 73rd round. In this process Data Envelopment Analysis has been used. The analysis shows wide variation in efficiency in the different sectors of the state. Attempts have been made to explain the differences in the efficiency scores. It is found that several factors are responsible for the differences of efficiency. Among these the location of enterprise and the restriction on the firm in the form of registration are also some factors that affects the efficiency of firms negatively. JEL Classification: D24, J46, O17