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Productivity and convergence in India: A state-level analysis

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  • Kumar, Surender
  • Managi, Shunsuke

Abstract

Total factor productivity plays an important role in the growth of the Indian economy. Using state-level data from 1993 to 2005 that were recently made available, we find widespread regional variation in productivity changes. In the years immediately following economic liberalization, productivity growth improved technical efficiency; however, in subsequent years, productivity growth was propelled by technological progress. We find a tendency toward convergence with regard to productivity growth among states; however, the states that were technically efficient when the economic reforms were instituted remained innovative in later years.

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  • Kumar, Surender & Managi, Shunsuke, 2012. "Productivity and convergence in India: A state-level analysis," Journal of Asian Economics, Elsevier, vol. 23(5), pages 548-559.
    • Handle: RePEc:eee:asieco:v:23:y:2012:i:5:p:548-559
    DOI: 10.1016/j.asieco.2012.05.002
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    Cited by:

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    2. Thanh Tam Nguyen-Huu & Minh Nguyen-Khac & Quoc Tran-Nam, 2017. "The role of environmental regulations and innovation in TFP convergence: Evidence from manufacturing SMEs in Vietnam," WIDER Working Paper Series 092, World Institute for Development Economic Research (UNU-WIDER).
    3. Matthias Schündeln, 2013. "Appreciating depreciation: physical capital depreciation in a developing country," Empirical Economics, Springer, vol. 44(3), pages 1277-1290, June.
    4. Rawat, Pankaj S. & Sharma, Seema, 2021. "TFP growth, technical efficiency and catch-up dynamics: Evidence from Indian manufacturing," Economic Modelling, Elsevier, vol. 103(C).
    5. Shubin Yang & Sandra Lancheros & Chris Milner, 2021. "Technological Catch-up to the National and Regional Frontier: Firm-level Evidence for India," Journal of Development Studies, Taylor & Francis Journals, vol. 57(8), pages 1303-1320, August.
    6. Biswa Swarup Misra & Saban Nazlioglu & Ilhan Kucukkaplan, 2022. "Sources of divergence in income in Indian states, 2001–2015," Development Policy Review, Overseas Development Institute, vol. 40(4), July.
    7. Kumar, Surender, 2013. "Crime and Economic Growth: Evidence from India," MPRA Paper 48794, University Library of Munich, Germany.
    8. Thanh Tam Nguyen-Huu & Minh Nguyen-Khac & Quoc Tran-Nam, 2017. "The role of environmental regulations and innovation in TFP convergence: Evidence from manufacturing SMEs in Vietnam," WIDER Working Paper Series wp-2017-92, World Institute for Development Economic Research (UNU-WIDER).
    9. Nilanjana Roy, 2022. "Youth dependency ratio and total factor productivity: a study on Indian States," Indian Economic Review, Springer, vol. 57(2), pages 443-467, December.

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    More about this item

    Keywords

    India; Total factor productivity; Nonparametric analysis; Convergence;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • E19 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Other

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