IDEAS home Printed from https://ideas.repec.org/a/sae/vision/v11y2007i4p53-65.html
   My bibliography  Save this article

Is Liberalisation Associated with Higher Productivity? A Case Study of Punjab Manufacturing

Author

Listed:
  • Ravi Kiran
  • Manpreet Kaur

Abstract

Productivity is an important concept in the context of the economic growth of a nation. The rate of productivity in accelerating the pace of economic growth is well recognised in both the theoretical as well as empirical literature on growth. The significance of productivity for economic growth was highlighted by Kuznets (1966) when he showed that rapid gain in industrial productivity was the crucial underpinning of Western Industrialization. The Indian Economy was thrust into throes of rapid change in the nineties when the then government of India adopted the New Economic Policy. Liberalization, Privatization and Globalization — became the three planks by which the Indian Economy was propelled into the fusion. This process has had maximum impact on the manufacturing sector, as it has radically changed its business environment and future growth dynamics. All the states of Indian union have been affected differently due to the structural changes. In response to changed policy regime different sub sectors of industry of Punjab have responded differently to adjust optimally. The present research work focuses on studying the response of manufacturing industries in Punjab to the changed policy regime after the advent of liberalisation and privatisation process in India. The present study analyses the trends in value added, labour, capital as well as trends in labour, capital and total factor productivity for sixteen industrial groups on the organised manufacturing sector for the period 1980 — 81 to 2002 — 03 and also for two sub periods, period I, 1980 — 81 to 1990 — 91 and period II, 1991 — 92 to 2002 — 03. The present study tries to examine the trends in partial productivities as well as total factor productivity in the two sub periods to see whether there has been an improvement in productivity in the post 1991 period, the period associated with liberalisation and globalisation. The study tries to analyse the industries which have been showing better performance in terms of partial and total factor productivity and also study the trends of the industries which have not performed well in the period of analysis.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:vision:v:11:y:2007:i:4:p:53-65
    DOI: 10.1177/097226290701100406
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/097226290701100406
    Download Restriction: no
    File URL: https://libkey.io/10.1177/097226290701100406?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Suhaiza Zailani & Nabsiah Abdul Wahid & Rajagopal Premkumar & M. Sathasivam, 2007. "The relationship between quality improvement and firms' productivity in Malaysia," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 2(3), pages 347-364.
    2. S Madheswaran & Hailin Liao & Badri Narayan RathAuthor-Email: smadhes@yahoo.co.uk, 2007. "Productivity growth of Indian manufacturing sector: panel estimation of stochastic production frontier and technical inefficiency," Journal of Developing Areas, Tennessee State University, College of Business, vol. 40(2), pages 35-50, January-M.
    3. 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.
    4. Moses Abramovitz, 1956. "Resource and Output Trends in the United States since 1870," NBER Books, National Bureau of Economic Research, Inc, number abra56-1, January.
    5. Seema Sharma, 2007. "Liberalisation and productivity growth: a case of Indian cement industry," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 2(3), pages 307-321.
    6. Sumon Kumar Bhaumik & Shubhashis Gangopadhyay & Shagun Krishnan, 2006. "Reforms, Entry and Productivity: Some Evidence from the Indian Manufacturing Sector," William Davidson Institute Working Papers Series 822, William Davidson Institute at the University of Michigan.
    7. Moses Abramovitz, 1956. "Resource and Output Trends in the United States since 1870," NBER Chapters, in: Resource and Output Trends in the United States since 1870, pages 1-23, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Noel Uri, 2001. "Telecommunications in the United States and Changing Productive Efficiency," Journal of Industry, Competition and Trade, Springer, vol. 1(3), pages 321-335, September.
    2. Kumar, Sanjesh & Singh, Baljeet, 2019. "Barriers to the international diffusion of technological innovations," Economic Modelling, Elsevier, vol. 82(C), pages 74-86.
    3. Jens J. Krüger, 2020. "Long‐run productivity trends: A global update with a global index," Review of Development Economics, Wiley Blackwell, vol. 24(4), pages 1393-1412, November.
    4. Benjamin Cole & Preeta Banerjee, 2013. "Morally Contentious Technology-Field Intersections: The Case of Biotechnology in the United States," Journal of Business Ethics, Springer, vol. 115(3), pages 555-574, July.
    5. William Easterly & Ross Levine, 2002. "It´s Not Factor Accumulation: Stylized Facts and Growth Models," Central Banking, Analysis, and Economic Policies Book Series, in: Norman Loayza & Raimundo Soto & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Editor) (ed.),Economic Growth: Sources, Trends, and Cycles, edition 1, volume 6, chapter 3, pages 061-114, Central Bank of Chile.
    6. Mohammad Imdadul Haque, 2019. "Growth Accounting for Saudi Arabia," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(6), pages 691-701, June.
    7. Michaelides, Panayotis & Milios, John, 2009. "TFP change, output gap and inflation in the Russian Federation (1994-2006)," Journal of Economics and Business, Elsevier, vol. 61(4), pages 339-352, July.
    8. Schuster, Florian & Krahé, Max & Sigl-Glöckner, Philippa & Leusder, Dominik, 2021. "The cyclical component of the debt brake: Analysis and a reform proposal," Papers 277890, Dezernat Zukunft - Institute for Macrofinance, Berlin.
    9. Schuster, Florian & Krahé, Max & Sigl-Glöckner, Philippa, 2021. "Wird die Konjunkturkomponente der Schuldenbremse in ihrer heutigen Ausgestaltung ihrer Aufgabe noch gerecht? Analyse und ein Reformvorschlag," Papers 277885, Dezernat Zukunft - Institute for Macrofinance, Berlin.
    10. Max Krahé & Florian Schuster & Philippa Sigl-Glöckner, 2021. "Wird die Konjunkturkomponente der Schuldenbremse ihrer Aufgabe noch gerecht? [Is the Cyclical Component of the Debt Brake Still Up to Its Task?]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 101(8), pages 621-628, August.
    11. Nikita Céspedes & Nelson Ramirez-Rondán, 2014. "Total Factor Productivity Estimation in Peru: Primal and Dual Approaches," Revista Economía, Fondo Editorial - Pontificia Universidad Católica del Perú, vol. 37(73), pages 9-39.
    12. Regev, Tali & Zoabi, Hosny, 2014. "Talent Utilization And Search For The Appropriate Technology," Macroeconomic Dynamics, Cambridge University Press, vol. 18(4), pages 863-882, June.
    13. G Cameron, 1996. "Innovation and Economic Growth," CEP Discussion Papers dp0277, Centre for Economic Performance, LSE.
    14. Matthias Blum & Eoin McLaughlin & Nick Hanley, 2019. "Accounting for Sustainable Development over the Long‐Run: Lessons from Germany," German Economic Review, Verein für Socialpolitik, vol. 20(4), pages 410-446, November.
    15. Francesco Quatraro, 2009. "Innovation, structural change and productivity growth: evidence from Italian regions, 1980--2003," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(5), pages 1001-1022, September.
    16. Angus Maddison, 1997. "Causal Influences on Productivity Performance 1820–1992: A Global Perspective," Journal of Productivity Analysis, Springer, vol. 8(4), pages 325-359, November.
    17. Milenko Popovic, 2007. "Rising Wage Inequality, Rate Of Return On Investment In Education, And Cost Of Education," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 3(5), pages 35-58.
    18. Nick Hanley & Louis Dupuy & Eoin McLaughlin, 2015. "Genuine Savings And Sustainability," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 779-806, September.
    19. Mauro Napoletano & Andrea Roventini & Sandro Sapio, 2004. "Yeast vs. Mushrooms: A Note on Harberger's "A Vision of the Growth Process"," LEM Papers Series 2004/03, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    20. Feldman, Maryann P. & Kogler, Dieter F., 2010. "Stylized Facts in the Geography of Innovation," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 381-410, Elsevier.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:vision:v:11:y:2007:i:4:p:53-65. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.