Measuring and Decomposing Sources of Productivity Performance in India's Paper and Pulp Industry under Liberalized Regime: A Nonparametric Approach
The purpose of this study is to develop a methodology in measuring productivity growth by decomposing it into technical change and technical efficiency change in India's paper industry. The prime objective of this article is to assess the impact of liberalization on productivity growth of India's paper industry. Specifically, this study quantifies the level of technical efficiency and technical change in this particular manufacturing sector. The paper applies Malmquist Productivity Index method to different sub-sectors of India’s Paper and pulp industry at aggregate level in order to have trend in productivity growth covering a period of 28 years commencing from 1979-80 to 2006-07. Finally, regressing the log difference of the measured productivity growth on the log difference of the capacity utilization rate which is a proxy for business cycle, attempt has been made to find out capacity utilization adjusted TFP growth. The result of this study reveals decline in growth rate of TFP during post-reforms (1991-92 to 2006-07) period showing adverse impact of liberalization at aggregate level. Results also indicate that during the study period, industry also experienced regress in technological progress along with stagnation in technical efficiency. Non-responding technical efficiency change and the deteriorating technical change were the main ingredients responsible for declining productivity change in Indian paper and pulp industry. Moreover, removal of short run variations in capacity utilization from the estimated TFP growth hardly affects its overall movement but remarkably mitigates its variation because variations between sub-periods are lesser after adjusting capacity utilization as cyclical factor.
Volume (Year): 5 (2012)
Issue (Month): 1 (April)
|Contact details of provider:|| Web page: http://ijbesar.teiemt.gr/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chand, Satish & Sne, Kunal, 2002.
"Trade Liberalization and Productivity Growth: Evidence from Indian Manufacturing,"
Review of Development Economics,
Wiley Blackwell, vol. 6(1), pages 120-32, February.
- Satish Chand & Kunal Sen, 1996. "Trade Liberalization and Productivity Growth: Evidence from Indian Manufacturing," Trade and Development 96/11, Australian National University, Department of Economics.
- Satish Chand & Kunal Sen, 1996. "Trade Liberalization and Productivity Growth: Evidence from Indian Manufacturing," Departmental Working Papers 1996-11, The Australian National University, Arndt-Corden Department of Economics.
- David K. Lambert & Elliott Parker, 1998. "Productivity in Chinese Provincial Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 378-392.
- Krishna, Pravin & Mitra, Devashish, 1998.
"Trade liberalization, market discipline and productivity growth: new evidence from India,"
Journal of Development Economics,
Elsevier, vol. 56(2), pages 447-462, August.
- Pravin Krishna & Devashish Mitra, . "Trade Liberalization, Market Discipline and Productivity Growth: New Evidence From India," Working Papers 96-8, Brown University, Department of Economics.
- Mahadevan, R., 2001. "Assessing the output and productivity growth of Malaysia's manufacturing sector," Journal of Asian Economics, Elsevier, vol. 12(4), pages 587-597.
- Bulent Unel, 2003. "Productivity Trends in India's Manufacturing Sectors in the Last Two Decades," IMF Working Papers 03/22, International Monetary Fund.
- J. R. Norsworthy & Michael J. Harper & Kent Kunze, 1979. "The Slowdown in Productivity Growth: Analysis of Some Contributing factors," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 10(2), pages 387-422.
When requesting a correction, please mention this item's handle: RePEc:tei:journl:v:5:y:2012:i:1:p:147-171. 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: (Kostas Stergidis)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.