The primary motivation of this paper is an inquiry into short-run efficiency, with factory level data, that can throw light on the reasons for survival of the jute industry in India. After briefly recapitulating the history of the rise of the Indian jute industry, and its stagnation in later...

We formulate a simultaneous equations model and with the data of a panel of 600 Indian firms for the period 1991-92 to 1997-98 test the hypothesis of finance constraint. The firms are classified by the dividend pay-out ratio into high-cost and low-cost groups; a high dividend pay-out ratio...