IDEAS home Printed from https://ideas.repec.org/a/spr/inecre/v53y2018i1d10.1007_s41775-019-00035-8.html
   My bibliography  Save this article

Are high-linked sectors more productive in India? An analysis under an input–output framework

Author

Listed:
  • Tulika Bhattacharya

    (St. Joseph’s College (Autonomous))

  • Meenakshi Rajeev

    (Institute for Social and Economic Change)

  • Indrajit Bairagya

    (Institute for Social and Economic Change)

Abstract

This paper uses an input–output (I–O) framework, considering five I–O matrices, over the period 1989–90 to 2007–08 to evaluate the total factor productivity growth (TFPG) of different sectors of the Indian economy. The methodology adopted under this framework (Miller and Blair 2009) takes into account not only the contributions of the value-added inputs such as labour and capital but also the contribution of the intermediate inputs to production. Subsequently, we compute forward and backward linkages of sectors in terms of output as well as employment to examine whether the high-linked sectors of the economy are relatively better in terms of productive growth or not. Our results show that agriculture has high employment linkages with other sectors of the economy together with positive TFPG. Several other sectors such as food, beverages, textile, printing, and so on do not necessarily have high linkages even though they reveal positive TFPG, especially during the post-liberalization period. By carrying out a sector-wise analysis, the paper identifies the high-linked sectors that need special attention in terms of productivity improvements for improving overall competitiveness of those industry segments that can generate a high level of output and/or employment through their linkage effects.

Suggested Citation

  • Tulika Bhattacharya & Meenakshi Rajeev & Indrajit Bairagya, 2018. "Are high-linked sectors more productive in India? An analysis under an input–output framework," Indian Economic Review, Springer, vol. 53(1), pages 333-367, December.
  • Handle: RePEc:spr:inecre:v:53:y:2018:i:1:d:10.1007_s41775-019-00035-8
    DOI: 10.1007/s41775-019-00035-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s41775-019-00035-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s41775-019-00035-8?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kathuria, Vinish & Rajesh Raj, S.N. & Sen, Kunal, 2013. "The effects of economic reforms on manufacturing dualism: Evidence from India," Journal of Comparative Economics, Elsevier, vol. 41(4), pages 1240-1262.
    2. Sonis, Michael & Guilhoto, Joaquim José Martins & Hewings, Geoffrey J.D. & Martins, Eduardo B., 1995. "Linkages, key sectors and structural change: some new perspectives," MPRA Paper 54754, University Library of Munich, Germany.
    3. 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.
    4. Dias Avila, Antonio Flavio & Evenson, Robert E., 2010. "Total Factor Productivity Growth in Agriculture: The Role of Technological Capital," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 4, chapter 72, pages 3769-3822, Elsevier.
    5. Aroca, Patricio & Garrido, Nicolás, 2017. "Sectoral breakdown of total factor productivity in Chile, 1996-2010," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    6. Tim J. Coelli & D. S. Prasada Rao, 2005. "Total factor productivity growth in agriculture: a Malmquist index analysis of 93 countries, 1980–2000," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 115-134, January.
    7. Shilpa Chaudhary, 2012. "Trends in Total Factor Productivity in Indian Agriculture: State-level Evidence using non-parametric Sequential Malmquist Index," Working papers 215, Centre for Development Economics, Delhi School of Economics.
    8. Mukherjee, Dipa, 2004. "Productivity in the Small Manufacturing Enterprises: Determinants and Policy Issues," MPRA Paper 4867, University Library of Munich, Germany.
    9. Baumol, William J & Wolff, Edward N, 1984. "On Interindustry Differences in Absolute Productivity," Journal of Political Economy, University of Chicago Press, vol. 92(6), pages 1017-1034, December.
    10. H P Mahesh & Meenakshi Rajeev, 2007. "Productivity of Indian Commercial Banks in the Pre- and Post-Liberalization Periods," The IUP Journal of Bank Management, IUP Publications, vol. 0(4), pages 17-30, November.
    11. Ram Pratap Sinha & Biswajit Chatterjee, 2008. "Fund-Based Activity of Indian Commercial Banks: A Malmquist Approach," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 43(1), pages 83-102, July.
    12. Tulika Bhattacharya & Meenakshi Rajeev, 2014. "Input-Output Linkages across Sectors and Employment Challenge in Indian Economy," Artha Vijnana, Gokhale Institute of Politics and Economics, vol. 56(1), pages 61-78.
    13. Ram Pratap Sinha, 2007. "Premium Income of Indian Life Insurance Industry: A Total Factor Productivity Approach," The IUP Journal of Financial Economics, IUP Publications, vol. 0(1), pages 61-69, March.
    14. Sangeeta Dhawan & K. K. Saxena, 1992. "Sectoral Linkages and Key Sectors of the Indian Economy," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 27(2), pages 195-210, July.
    15. Pirkko Aulin-Ahmavaara, 1999. "Effective Rates of Sectoral Productivity Change," Economic Systems Research, Taylor & Francis Journals, vol. 11(4), pages 349-363.
    16. Rao, N. Chandrasekhara, 2005. "Total Factor Productivity in Andhra Pradesh Agriculture," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 18(1), January.
    17. Kumar, Praduman & Mittal, Surabhi & Hossain, Mahabub, 2008. "Agricultural Growth Accounting and Total Factor Productivity in South Asia: A Review and Policy Implications," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 21(2).
    18. Hewings, Geoffrey J. D. & Fonseca, Manuel & Guilhoto, Joaquim & Sonis, Michael, 1989. "Key sectors and structural change in the Brazilian economy: A comparison of alternative approaches and their policy implications," Journal of Policy Modeling, Elsevier, vol. 11(1), pages 67-90.
    19. Mainak Mazumdar & Meenakshi Rajeev, 2009. "A Comparative Analysis of Efficiency and Productivity of the Indian Pharmaceutical Firms: A Malmquist-Meta-Frontier Approach," Working Papers 223, Institute for Social and Economic Change, Bangalore.
    20. Shirley W. Y. Kuo & Christina Y. Liu, 1999. "The Development of the Economy of Taiwan," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 13(1), pages 36-49, May.
    21. Prithwis Kumar De, 2004. "Technical Efficiency, Ownership, And Reforms: An Econometric Study of Indian Banking Industry," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 39(1), pages 261-294, January.
    22. Kumar, Praduman & Mittal, Surabhi, 2006. "Agricultural Productivity Trends in India: Sustainability Issues," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 19(Conferenc).
    23. Praduman kumar & Anjani kumar & Surabhi Mittal, 2004. "Total Factor Productivity of Crop Sector in the Indo-Gangetic Plain of India: Sustainability issues revisited," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 39(1), pages 169-201, January.
    24. Wolff, Edward N., 1994. "Productivity measurement within an input-output framework," Regional Science and Urban Economics, Elsevier, vol. 24(1), pages 75-92, February.
    25. Lilyan E. Fulginiti & Richard K. Perrin, 1998. "Agricultural productivity in developing countries," Agricultural Economics, International Association of Agricultural Economists, vol. 19(1-2), pages 45-51, September.
    26. Mathur Somesh, 2007. "Indian IT and ICT Industry: A Performance Analysis Using Data Envelopment Analysis and Malmquist Index," Global Economy Journal, De Gruyter, vol. 7(2), pages 1-42, June.
    27. Barry Bosworth & Susan M. Collins, 2008. "Accounting for Growth: Comparing China and India," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 45-66, Winter.
    28. Mainak Mazumdar & Meenakshi Rajeev, 2009. "Comparing the Efficiency and Productivity of the Indian Pharmaceutical Firms: A Malmquist-Meta-Frontier Approach," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 8(2), pages 159-181, August.
    29. Junning Cai & Pingsun Leung, 2004. "Linkage Measures: a Revisit and a Suggested Alternative," Economic Systems Research, Taylor & Francis Journals, vol. 16(1), pages 63-83.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bhattacharya, Tulika & Bhandari, Bornali & Bairagya, Indrajit, 2020. "Where are the jobs? Estimating skill-based employment linkages across sectors for the Indian economy: An input-output analysis," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 292-308.

    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. Bhushan, S., 2016. "TFP Growth of Wheat and Paddy in Post-Green Revolution Era in India: Parametric and Non-Parametric Analysis," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 29(1).
    2. Néstor A. Le Clech & Carmen Fillat Castejón, 2017. "Productivity, efficiency and technical change in world agriculture: a färe-primont index approach," Documentos de Trabajo dt2017-09, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    3. Miguel Martín-Retortillo & Vicente Pinilla & Jackeline Velazco & Henry Willebald, 2016. "The dynamics of latin american agricultural production growth, 1950-2008," Documentos de Trabajo (DT-AEHE) 1610, Asociación Española de Historia Económica.
    4. Alejandro Nin-Pratt & Bingxin Yu & Shenggen Fan, 2010. "Comparisons of agricultural productivity growth in China and India," Journal of Productivity Analysis, Springer, vol. 33(3), pages 209-223, June.
    5. Majiwa, Eucabeth Bosibori Opande & Lee, Boon & Wilson, Clevo, 2015. "Multi-lateral multi-output measurement of productivity: the case of African agriculture," 2015 Conference, August 9-14, 2015, Milan, Italy 212769, International Association of Agricultural Economists.
    6. repec:fgv:epgrbe:v:68:n:3:a:2 is not listed on IDEAS
    7. Arega D. Alene, 2010. "Productivity growth and the effects of R&D in African agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 223-238, May.
    8. Mounir Belloumi & Mohamed Salah Matoussi, 2008. "Measuring Agricultural Productivity Growth in MENA Countries," Working Papers 416, Economic Research Forum, revised 06 Jan 2008.
    9. Ramani, Shyama V. & Thutupalli, Ajay, 2015. "Emergence of controversy in technology transitions: Green Revolution and Bt cotton in India," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 198-212.
    10. Olson, Kent D. & Vu, Linh, 2009. "Productivity Growth, Technical Efficiency and Technical Change on Minnesota Farms," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49204, Agricultural and Applied Economics Association.
    11. Liis LILL, 2008. "Assessing Economic Complexity in some OECD countries with Input-Output Based Measures," EcoMod2008 23800082, EcoMod.
    12. Zuniga Gonzalez, Carlos Alberto, 2012. "Total factor productivity and Bio Economy effects," MPRA Paper 49355, University Library of Munich, Germany, revised 13 Nov 2012.
    13. Carlos Ludena, 2010. "Agricultural Productivity Growth, Efficiency Change and Technical Progress in Latin America and the Caribbean," Research Department Publications 4675, Inter-American Development Bank, Research Department.
    14. Surya Bhushan, 2021. "Labour Productivity Dynamics in Indian Agriculture: 2000–2016," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(2), pages 371-388, June.
    15. Shilpa Chaudhary, 2012. "Trends in Total Factor Productivity in Indian Agriculture: State-level Evidence using non-parametric Sequential Malmquist Index," Working papers 215, Centre for Development Economics, Delhi School of Economics.
    16. Varun Mahajan & D. K. Nauriyal & S. P. Singh, 2020. "Domestic market competitiveness of Indian drug and pharmaceutical industry," Review of Managerial Science, Springer, vol. 14(3), pages 519-559, June.
    17. José Niño-Amézquita & Fedor Legotin & Oleg Barbakov, 2017. "Economic success and sustainability in pharmaceutical sector: a case of Indian SMEs," Post-Print hal-01735846, HAL.
    18. Chiu, Yung-Ho & Lee, Jen-Hui & Lu, Ching-Cheng & Shyu, Ming-Kuang & Luo, Zhengying, 2012. "The technology gap and efficiency measure in WEC countries: Application of the hybrid meta frontier model," Energy Policy, Elsevier, vol. 51(C), pages 349-357.
    19. Dilip Saikia, 2014. "Total Factor Productivity In Agriculture: A Review Of Measurement Issues In The Indian Context," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 8(2), pages 45-61, DECEMBER.
    20. Kurup, Suresh & Jha, Girish & Singh, Alka, 2015. "Technical and efficiency changes in oilseed sector in India: Implications for policy," 2015 Conference, August 9-14, 2015, Milan, Italy 212017, International Association of Agricultural Economists.
    21. Butzer, Rita & Mundlak, Yair & Larson, Donald F., 2010. "Measures of fixed capital in agriculture," Policy Research Working Paper Series 5472, The World Bank.

    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:spr:inecre:v:53:y:2018:i:1:d:10.1007_s41775-019-00035-8. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.springer.com .

    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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.