Indian Journal of Industrial Relations: Economics & Social Dev.

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Estimation & Decomposition of Productivity Change in Food, Beverages & Tobacco Products Using Frontier Approaches


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

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The study estimates and decomposes the sources of productivity change of the 4- digit food, beverages and tobacco industries in India during 1998/99 – 2017/18, pre-economic crises period (1998-99 to 2007-08) and post-economic crises period (2008-09 to 2017-18) using Data Envelop Analysis (DEA) and Stochastic Frontier Approach (SFA). The study decomposes the source s of TFPG into technological change (TP), technical efficiency change (TEC) and economic scale change (SC). It was found that the growth rates of TFP in most of the 4-digit industries of food, beverages and tobacco products in India have declined during the post financial meltdown period (2008/09 – 2017/18) and the decline in TFPG of them during the period is mainly accounted for by the decline in technological progress (TP).
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  • Estimation & Decomposition of Productivity Change in Food, Beverages & Tobacco Products Using Frontier Approaches

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Authors

Prasanta Kumar Roy
Midnapore College (Autonomous), Midnapore 721101, India
Devkumar Nayek
Midnapore College (Autonomous), Midnapore 721101, India
Sebak Kumar Jana
Dept. of Economics with Rural Development, Vidyasagar University, Midnapore, India
Purnendu Sekhar Das
Vinod Gupta School of Management, IIT, Kharagpur, India

Abstract


The study estimates and decomposes the sources of productivity change of the 4- digit food, beverages and tobacco industries in India during 1998/99 – 2017/18, pre-economic crises period (1998-99 to 2007-08) and post-economic crises period (2008-09 to 2017-18) using Data Envelop Analysis (DEA) and Stochastic Frontier Approach (SFA). The study decomposes the source s of TFPG into technological change (TP), technical efficiency change (TEC) and economic scale change (SC). It was found that the growth rates of TFP in most of the 4-digit industries of food, beverages and tobacco products in India have declined during the post financial meltdown period (2008/09 – 2017/18) and the decline in TFPG of them during the period is mainly accounted for by the decline in technological progress (TP).

References