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Economic reform and Productivity Growth in Indian Paper and Paper Products Industry: A Nonparametric Analysis

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Author Info
Chirayil, Anish
Abstract

This paper applied the Malmquist Productivity Index in order to estimate total factor productivity growth and its components (efficiency change and technological progress) in Indian paper and paper products industry during pre and post-reform period. The obtained estimates of TFP change at the aggregate and sectoral level, indicates that the net impact of economic reforms on the productivity growth of paper and paper products industry was negative. It was evident in the study that the negative TFP change was decreased (from -8.6% to -5.2%) in the post-reform period in paper and paper products industry at the aggregate level. It was found in this study that the technical efficiency change and the technical change was the deteriorating factor for productivity change in Indian paper and paper products industry. Among similar trends were observed at the sub-sectoral level also. Further, the results of this study suggest that specific policies should be implemented in order to improve efficiency as well as technical progress, thus ultimately facilitating long-run productivity growth.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16919.

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Date of creation: Dec 2008
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Handle: RePEc:pra:mprapa:16919

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Related research
Keywords: Indian Paper Industry; Economic Reforms; Productivity; Malmquist Index;

Find related papers by JEL classification:
O25 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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  1. Pattnayak, Sanja S. & Thangavelu, S.M., 2005. "Economic reform and productivity growth in Indian manufacturing industries: an interaction of technical change and scale economies," Economic Modelling, Elsevier, vol. 22(4), pages 601-615, July. [Downloadable!] (restricted)
  2. Unel Bulent, 2003. "Productivity Trends in India's Manufacturing Sectors in the Last Two Decades," IMF Working Papers 03/22, International Monetary Fund. [Downloadable!]
  3. Rashmi Banga & B.N.Goldar, 2004. "Contribution of services to output growth and productivity in Indian manufacturing: Pre and post reforms," Indian Council for Research on International Economic Relations, New Delhi Working Papers 139, Indian Council for Research on International Economic Relations, New Delhi, India. [Downloadable!]
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