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An Inter-State Perspective on Manufacturing Productivity in India: 1980-81 to 2000-01

Author

Listed:
  • Pushpa Trivedi

    (Indian Institute of Technology %G –%@ Bombay, Powai, Mumbai-400 076, India)

Abstract

Industrial performance of various states needs to be viewed in totality, i.e, with respect to growth of output, employment and productivity. Moreover, productivity levels are as important as productivity growth trends, as both are pertinent in the convergence process. This study is an attempt to interpret inter-state differences in productivity movements in organized manufacturing sector, in a larger perspective of employment and output trends. The time-span of the study is 1980-81 to 2000-01 and it encompasses 10 major states of India. The study empirically confirms the existence of inter-state differences in productivity levels and growth rates. It points out that states, such as, Bihar and West Bengal are diverging away from rather than converging to the growth rates of output of organized manufacturing sector at the national level. Though productivity growth in Bihar appears to be high, it has been mainly achieved by joblessness. Madhya Pradesh and Rajasthan, which have been considered as BIMARU states, seem to be good performers from a wider perspective and show the promise to get themselves rid of their economically backward status.

Suggested Citation

  • Pushpa Trivedi, 2004. "An Inter-State Perspective on Manufacturing Productivity in India: 1980-81 to 2000-01," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 39(1), pages 203-237, January.
    • Handle: RePEc:dse:indecr:v:39:y:2004:i:1:p:203-237
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    Citations

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    Cited by:

    1. Choudhry, Sonam, 2021. "Is India's formal manufacturing sector ‘hollowing out’- importance of intermediate input," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 533-547.
    2. Arnab Deb, 2013. "Economic Reforms, Capacity Utilization, and Productivity Growth in Indian Manufacturing," Alumni working papers 2013-05, University of Connecticut, Department of Economics.
    3. 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.
    4. Subhash C. Ray & Arnab K. Deb & Kankana Mukherjee, 2021. "Unrestricted geometric distance functions and the Geometric Young productivity index: an analysis of Indian manufacturing," Empirical Economics, Springer, vol. 60(6), pages 3103-3134, June.

    More about this item

    Keywords

    Productivity; Manufacturing; Economic Reforms; Growth; India.;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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