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Economic Underdevelopment and Total Factor Growth in Small Scale Industries: Some Evidences from India


  • Hemanta Saikia

    () (Hemo Prova Borbora Girls’ College, Assam, India)


Globalization of Indian economy and fast and large industrialization questioned the sustainability and endurance of small scale industries (SSIs) from 1991. In this regard productivity and performance is remaining an issue that needs analysis for their development. However economic underdevelopment is remain a problem for the development of small scale industries. In this paper an attempt has been made to examine the productive performance of in small scale industries in India in underdeveloped areas with special reference to Assam. The findings of the study suggest the Total Factor Productivity (TFP) of SSIs in underdeveloped areas seemed to be growing steadily over the time. The overall linear trend line of TFPG of SSIs of India indicates a declining trend over the periods from 1973- 74 to 2001-2002.

Suggested Citation

  • Hemanta Saikia, 2011. "Economic Underdevelopment and Total Factor Growth in Small Scale Industries: Some Evidences from India," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(41), pages 81-105, September.
  • Handle: RePEc:rej:journl:v:14:y:2011:i:41:p:81-105

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    References listed on IDEAS

    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    More about this item


    Small scale Industry; Total factor productivity; underdevelopment;

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology


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