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

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  • Chirayil, Anish
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    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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    Bibliographic Info

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

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    1. Bulent Unel, 2003. "Productivity Trends in India's Manufacturing Sectors in the Last Two Decades," IMF Working Papers 03/22, International Monetary Fund.
    2. 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, Elsevier, vol. 22(4), pages 601-615, July.
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