Open Access Open Access  Restricted Access Subscription Access

Impact of Agglomeration Economies on Productivity of Pharmaceutical Firms of Himachal Pradesh


Affiliations
1 Assistant Professor, Post Graduate Department of Economics, DAV College, Sector 10 C, Chandigarh – 160 011, India
2 Research Scholar, Department of Economics, Punjab University, Chandigarh – 160 014, India

   Subscribe/Renew Journal


This paper used Levinsohn and Petrin's methodology to assess the productivity performance of the pharmaceutical manufacturing firms of the state of Himachal Pradesh over the period from 2001-2002 to 2015-2016. Further, a fixed effects approach has been brought into use to determine the impact of various agglomeration variables on the total factor productivity of Himachal Pradesh's pharmaceutical manufacturing firms. The total factor productivity of Himachal Pradesh’s pharmaceutical firms showed an unsteady performance over the period under study. It was observed that while urbanization has helped increase the productivity of pharmaceutical firms of the State, after a certain level, diseconomies arising from increasing urbanization tend to affect the productivity of firms adversely. Although intraindustry localization tended to impact productivity of the firms negatively, the concentration of a variety of industries affected the productivity of the firms positively.

Keywords

Agglomeration Economies, Total Factor Productivity, Pharmaceutical Firms, Himachal Pradesh.

Paper Submission Date: November 18, 2019; Paper Sent Back for Revision: November 25, 2019; Paper Acceptance Date: December 1, 2019.

User
Subscription Login to verify subscription
Notifications
Font Size

Abstract Views: 241

PDF Views: 0




  • Impact of Agglomeration Economies on Productivity of Pharmaceutical Firms of Himachal Pradesh

Abstract Views: 241  |  PDF Views: 0

Authors

Himanshu
Assistant Professor, Post Graduate Department of Economics, DAV College, Sector 10 C, Chandigarh – 160 011, India
Dilasha Anand
Research Scholar, Department of Economics, Punjab University, Chandigarh – 160 014, India

Abstract


This paper used Levinsohn and Petrin's methodology to assess the productivity performance of the pharmaceutical manufacturing firms of the state of Himachal Pradesh over the period from 2001-2002 to 2015-2016. Further, a fixed effects approach has been brought into use to determine the impact of various agglomeration variables on the total factor productivity of Himachal Pradesh's pharmaceutical manufacturing firms. The total factor productivity of Himachal Pradesh’s pharmaceutical firms showed an unsteady performance over the period under study. It was observed that while urbanization has helped increase the productivity of pharmaceutical firms of the State, after a certain level, diseconomies arising from increasing urbanization tend to affect the productivity of firms adversely. Although intraindustry localization tended to impact productivity of the firms negatively, the concentration of a variety of industries affected the productivity of the firms positively.

Keywords


Agglomeration Economies, Total Factor Productivity, Pharmaceutical Firms, Himachal Pradesh.

Paper Submission Date: November 18, 2019; Paper Sent Back for Revision: November 25, 2019; Paper Acceptance Date: December 1, 2019.




DOI: https://doi.org/10.17010/aijer%2F2019%2Fv8i6%2F150841