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Trade Policy and Productivity Growth in Indian Manufacturing

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  • Chris Milner
  • Dev Vencappa
  • Peter Wright

Abstract

This article explores the impact of trade policy reforms on total factor productivity (TFP) growth in the Indian manufacturing sectors. For a range of measures of TFP growth, it explores the pre‐ and post‐trade liberalisation performance at the two‐digit manufacturing industry level. The results indicate an increase in TFP growth on average and for the majority of manufacturing industries in the post‐trade reform period.

Suggested Citation

  • Chris Milner & Dev Vencappa & Peter Wright, 2007. "Trade Policy and Productivity Growth in Indian Manufacturing," The World Economy, Wiley Blackwell, vol. 30(2), pages 249-266, February.
    • Handle: RePEc:bla:worlde:v:30:y:2007:i:2:p:249-266
    DOI: 10.1111/j.1467-9701.2007.00881.x
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    References listed on IDEAS

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    1. International Monetary Fund, 2000. "India: Recent Economic Developments," IMF Staff Country Reports 2000/155, International Monetary Fund.
    2. Dale W. Jorgenson, 1995. "Productivity, Volume 1: Postwar US Economic Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262100495, December.
    3. Arvind Panagariya, 2004. "India in the 1980s and 1990s: A Triumph of Reforms:," International Trade 0403005, University Library of Munich, Germany.
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    Citations

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    Cited by:

    1. Arnab K. Deb & Subhash C. Ray, 2014. "An Inter-state Analysis of Total Factor Productivity Growth in Selected Two-digit Manufacturing Industries in India," Global Business Review, International Management Institute, vol. 15(4_suppl), pages 59-86, December.
    2. R. Rijesh, 2019. "International Trade and Productivity Growth in Indian Industry: Evidence from the Organized Manufacturing Sector," Journal of South Asian Development, , vol. 14(1), pages 1-39, April.
    3. Arnab Deb, 2013. "Economic Reforms, Capacity Utilization, and Productivity Growth in Indian Manufacturing," Alumni working papers 2013-05, University of Connecticut, Department of Economics.
    4. Wim Suyker & P. Buitelaar & Henri de Groot, 2007. "India and the Dutch economy; stylised facts and prospects," CPB Document 155, CPB Netherlands Bureau for Economic Policy Analysis.
    5. Arnab K. Deb & Subhash C. Ray, 2013. "Economic Reforms and Total Factor Productivity Growth of Indian Manufacturing: An Inter-State Analysis," Working papers 2013-04, University of Connecticut, Department of Economics, revised Apr 2013.
    6. R. Rijesh, 2015. "Technology Import and Manufacturing Productivity in India: Firm Level Analysis," Journal of Industry, Competition and Trade, Springer, vol. 15(4), pages 411-434, December.
    7. Enrico Marelli & Marcello Signorelli, 2011. "China and India: Openness, Trade and Effects on Economic Growth," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(1), pages 129-154, June.
    8. Dibyendu Maiti, 2019. "Trade, Labor Share, and Productivity in India’s Industries," ADB Institute Series on Development Economics, in: Gary Fields & Saumik Paul (ed.), Labor Income Share in Asia, chapter 0, pages 179-205, Springer.
    9. Berhanu Abegaz & Arnab K. Basu, 2011. "The Elusive Productivity Effect of Trade Liberalization in the Manufacturing Industries of Emerging Economies," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 47(1), pages 5-27, January.
    10. Dibyendu Maiti, 2013. "Market imperfections, trade reform and total factor productivity growth: theory and practices from India," Journal of Productivity Analysis, Springer, vol. 40(2), pages 207-218, October.
    11. Arnab K. Deb, 2014. "Economic Reforms, Capacity Utilization and Productivity Growth in Indian Manufacturing," Global Business Review, International Management Institute, vol. 15(4), pages 719-746, December.
    12. Ravi Kiran & Manpreet Kaur, 2007. "Is Liberalisation Associated with Higher Productivity? A Case Study of Punjab Manufacturing," Vision, , vol. 11(4), pages 53-65, October.
    13. Nithyashree, M L, 2021. "The role of the macro environment and firm-specific characteristics in improving the resource use efficiency of the Indian food processing industry," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 34(Conferenc), October.

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