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Intangible Capital and Firm Productivity

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  • Bishwanath Goldar
  • Yashobanta Parida

Abstract

An estimate of intangible capital stock is made for a sample of about 3,200 Indian corporate firms for 2012–2013, based on investments made by the firms in various intangible assets during the previous 10 years. For manufacturing and services firms of the sample, three alternate specifications of a production function are estimated in which intangible capital is taken as an input. This analysis clearly reveals that intangible capital has a significant positive impact on productivity of manufacturing and services firms in India. The rate of return to intangible capital is found to be much higher than that to tangible capital.

Suggested Citation

  • Bishwanath Goldar & Yashobanta Parida, 2017. "Intangible Capital and Firm Productivity," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 18(2), pages 246-275, September.
    • Handle: RePEc:sae:soueco:v:18:y:2017:i:2:p:246-275
    DOI: 10.1177/1391561417732198
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    References listed on IDEAS

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    Cited by:

    1. Roth, Felix, 2019. "Intangible Capital and Labour Productivity Growth: A Review of the Literature," Hamburg Discussion Papers in International Economics 4, University of Hamburg, Department of Economics.

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    More about this item

    Keywords

    Intangible capital; firm productivity; rate of return to intangible capital; manufacturing and services firms; India’s corporate sector;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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