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Total Factor Productivity Growth in Indian Manufacturing:A Biennial Malmquist Analysis of Inter-State Data

Author

Listed:
  • Deb, Arnab K.

    (International Management Institute, New Delhi)

  • Ray, Subhash C.

    (Department of Economics, University of Connecticut)

Abstract

Using input-output data from the Annual Survey of Industries for the period 1970-71 through 2007-08, this paper compares the pre- and post-reform performances of Indian manufacturing in terms of total factor productivity growth. We use Data Envelopment Analysis to construct a Biennial Malmquist Index of total factor productivity for individual states. Results show that at the all-India level, total factor productivity growth rate in manufacturing is higher during the post-reform period. Although the majority of states experienced accelerated productivity growth, some states did experience decline in productivity after the reforms. Both before and after the reforms technological progress was the most important component of productivity growth in Indian manufacturing.

Suggested Citation

  • Deb, Arnab K. & Ray, Subhash C., 2014. "Total Factor Productivity Growth in Indian Manufacturing:A Biennial Malmquist Analysis of Inter-State Data," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 49(1), pages 1-25.
  • Handle: RePEc:dse:indecr:0081
    as

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    More about this item

    Keywords

    Economic Reform; Total Factor Productivity; Data Envelopment Analysis; Biennial Malmquist Index.;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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