Indian Journal of Industrial Relations: Economics & Social Dev.

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Input Elasticity of Output & Returns to Scale of Indian Manufacturing During Pre & Post Financial Crisis


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1 Midnapore College (Autonomous), Midnapore, Dist. Paschim Medinipur (W.B.), India
     

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The study estimates input elasticities of output and returns to scale of the organized Indian manufacturing industries during 1998-99 to 2017-18, during the pre-economic crisis period (1998-99 to 2007-08) and the post-economic crisis period (2008- 09 to 2017-18) using the familiar Cobb-Douglas type production function. The results show that there is an upward trend in the labor elasticity of output (eL) and returns to scale parameter during the study period (1998-99 to 2017-18) and labor elasticity of output is lying above the capital elasticity of output during the post-economic crisis period (2008-09 to 2017-18) while the same was lying below the capital elasticity of output (eK) during the pre-economic crisis period (1998-99 to 2007-08).
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  • Input Elasticity of Output & Returns to Scale of Indian Manufacturing During Pre & Post Financial Crisis

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Authors

Surendranath Mandi
Midnapore College (Autonomous), Midnapore, Dist. Paschim Medinipur (W.B.), India
Devkumar Nayek
Midnapore College (Autonomous), Midnapore, Dist. Paschim Medinipur (W.B.), India
Maromiya Das
Midnapore College (Autonomous), Midnapore, Dist. Paschim Medinipur (W.B.), India
Ipsita Mitra
Midnapore College (Autonomous), Midnapore, Dist. Paschim Medinipur (W.B.), India
Shreya Samui
Midnapore College (Autonomous), Midnapore, Dist. Paschim Medinipur (W.B.), India
Shrestha Dutta
Midnapore College (Autonomous), Midnapore, Dist. Paschim Medinipur (W.B.), India

Abstract


The study estimates input elasticities of output and returns to scale of the organized Indian manufacturing industries during 1998-99 to 2017-18, during the pre-economic crisis period (1998-99 to 2007-08) and the post-economic crisis period (2008- 09 to 2017-18) using the familiar Cobb-Douglas type production function. The results show that there is an upward trend in the labor elasticity of output (eL) and returns to scale parameter during the study period (1998-99 to 2017-18) and labor elasticity of output is lying above the capital elasticity of output during the post-economic crisis period (2008-09 to 2017-18) while the same was lying below the capital elasticity of output (eK) during the pre-economic crisis period (1998-99 to 2007-08).

References