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Effects of Market Competition and Labour Flexibility on Technical Efficiency: Evidence from Indian Manufacturing Plants
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DOI：10.1016/j.econmod.2026.107724.png)
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Abstract
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• The study estimates effect of market competition on technical efficiency (TE) using SFA with IV. • The effect of state-time varying labour flexibility on TE is identified using continuous treatment staggered DiD. • TE is low and uneven across plants and industries, indicating scope for improvement. • The results show market competition and labour flexibility are positively associated with TE. • TE rises with flexibility, and achieved gains persist under renewed rigidity.
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