Indian Journal of Industrial Relations: Economics & Social Dev.

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Productivity Growth of Indian Manufacturing: Panel Estimation of Stochastic Production Frontier


Affiliations
1 Dept. of Economics, Midnapore College (Autonomous) 721101, India
2 Vinod Gupta School of Management, IIT Kharagpur, India
3 Dept. of Economics, Vidyasagar University, Midnapore, India
     

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Along with technological progress, changes in technical efficiency, scale effect and changes in allocative efficiency can also contribute to productivity growth. The present study used the stochastic frontier production approach to decompose sources of TFPG of organized manufacturing into technological progress, changes in technical efficiency, scale effect and changes in allocative efficiency during 1981/ 82 -2010/11. According to the results, technical inefficiency, though exists, is time invariant and technological progress (TP) became the main contributor to TFPG of the sector during 1981/82 – 2010/11. Furthermore, TFPG of organized manufacturing in most states in India declined during the post-reform period due to the decline in technological progress.
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  • Productivity Growth of Indian Manufacturing: Panel Estimation of Stochastic Production Frontier

Abstract Views: 255  |  PDF Views: 1

Authors

Prasanta Kumar Roy
Dept. of Economics, Midnapore College (Autonomous) 721101, India
Purnendu Sekhar Das
Vinod Gupta School of Management, IIT Kharagpur, India
Mihir Kumar Pal
Dept. of Economics, Vidyasagar University, Midnapore, India

Abstract


Along with technological progress, changes in technical efficiency, scale effect and changes in allocative efficiency can also contribute to productivity growth. The present study used the stochastic frontier production approach to decompose sources of TFPG of organized manufacturing into technological progress, changes in technical efficiency, scale effect and changes in allocative efficiency during 1981/ 82 -2010/11. According to the results, technical inefficiency, though exists, is time invariant and technological progress (TP) became the main contributor to TFPG of the sector during 1981/82 – 2010/11. Furthermore, TFPG of organized manufacturing in most states in India declined during the post-reform period due to the decline in technological progress.