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Estimating impact of infrastructure on productivity and efficiency of Indian manufacturing

Author

Listed:
  • Arup Mitra
  • Chandan Sharma
  • Marie-Ange Véganzonès-Varoudakis

Abstract

Drawing on a recent data set of the Indian manufacturing industry for the period 1994--2008, this article shows for eight sectors that core infrastructure matters in determining Total Factor Productivity (TFP) and Technical Efficiency (TE). Results suggest that the impact is rather strong on both measures (elasticity of 0.32 and 0.17, respectively). This finding is of particular importance in the Indian context characterized by infrastructure bottlenecks and strongly supports the view that a lack of infrastructure can hamper growth in developing countries.

Suggested Citation

  • Arup Mitra & Chandan Sharma & Marie-Ange Véganzonès-Varoudakis, 2012. "Estimating impact of infrastructure on productivity and efficiency of Indian manufacturing," Applied Economics Letters, Taylor & Francis Journals, vol. 19(8), pages 779-783, May.
  • Handle: RePEc:taf:apeclt:v:19:y:2012:i:8:p:779-783
    DOI: 10.1080/13504851.2011.603687
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    Cited by:

    1. Evgeniya, Gorlova, 2016. "TFP and Intelligence: a cross-national empirical evidence," MPRA Paper 69207, University Library of Munich, Germany.
    2. repec:gam:jsusta:v:11:y:2019:i:3:p:629-:d:200723 is not listed on IDEAS
    3. repec:blg:journl:v:12:y:2017:i:1:p:185-201 is not listed on IDEAS
    4. Marie-Ange VEGANZONES-VAROUDAKIS & Arup MITRA & Chandan SHARMA, 2012. "Are reforms productive? Explaining productivity and efficiency in the Indian manufacturing," Working Papers 201233, CERDI.
    5. Goldar, Bishwanath. & Sadhukhan, Amit., 2015. "Employment and wages in Indian manufacturing : post-reform performance," ILO Working Papers 994881323402676, International Labour Organization.
    6. repec:ilo:ilowps:488132 is not listed on IDEAS
    7. repec:vrs:subboe:v:63:y:2018:i:2:p:87-106:n:5 is not listed on IDEAS
    8. Alfredo Marvão Pereira & Rui Manuel Pereira, 2017. "Infrastructure Investment in Portugal and the Traded/Non-Traded Industry Mix," GEE Papers 0078, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Sep 2017.

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