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Estimating Components of Total Factor Productivity Growth Using Frontier Approaches: A Study of 4-Digit Manufacturing Industries of Non-Metallic Mineral Products in India


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1 Associate Professor, Midnapore College, Paschim Medinipur, West Bengal, India
     

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The study estimates components of Total Factor Productivity Growth (TFPG) of the 4-digit manufacturing industries of non-metallic mineral products in India during the period from 1998-99 to 2017-18, pre-economic crises period (1998-99 to 2007-08) and post-economic crises period (2008-09 to 2017-18) using frontier approaches, i.e., Data Envelope Analysis (DEA) and Stochastic Frontier Approach (SFA). The components of TFPG are technological progress (TP), technical efficiency change (TEC) and economic scale change (SC). The study found that the growth rates of TFP in almost all the 4-digit manufacturing industries of non-metallic mineral products in India declined during the post-economic crises period (post-financial meltdown period) and the decline in TFPG of those industries during that period is mainly accounted for by the decline in technological progress (TP) of the same as per SFA and by the decline in technical efficiency change (TEC) and scale change (SC) of them as per DEA.

Keywords

Total Factor Productivity Growth, Technological Process, Technical Efficiency Change, 4-Digit Manufacturing Industries, Non-Metallic Mineral Products
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  • Estimating Components of Total Factor Productivity Growth Using Frontier Approaches: A Study of 4-Digit Manufacturing Industries of Non-Metallic Mineral Products in India

Abstract Views: 237  |  PDF Views: 0

Authors

Prasanta Kumar Roy
Associate Professor, Midnapore College, Paschim Medinipur, West Bengal, India

Abstract


The study estimates components of Total Factor Productivity Growth (TFPG) of the 4-digit manufacturing industries of non-metallic mineral products in India during the period from 1998-99 to 2017-18, pre-economic crises period (1998-99 to 2007-08) and post-economic crises period (2008-09 to 2017-18) using frontier approaches, i.e., Data Envelope Analysis (DEA) and Stochastic Frontier Approach (SFA). The components of TFPG are technological progress (TP), technical efficiency change (TEC) and economic scale change (SC). The study found that the growth rates of TFP in almost all the 4-digit manufacturing industries of non-metallic mineral products in India declined during the post-economic crises period (post-financial meltdown period) and the decline in TFPG of those industries during that period is mainly accounted for by the decline in technological progress (TP) of the same as per SFA and by the decline in technical efficiency change (TEC) and scale change (SC) of them as per DEA.

Keywords


Total Factor Productivity Growth, Technological Process, Technical Efficiency Change, 4-Digit Manufacturing Industries, Non-Metallic Mineral Products

References