Efficiency, technological progress and regional comparative advantage: a study of the organized manufacturing sector in India
Technological upgrading and increases in capital intensity have been championed in the organized manufacturing sector in India on the grounds that such measures improve productivity, efficiency and competitiveness. In a developing economy, these are costly propositions. Also, the effect of technological changes on productivity and efficiency levels must be estimated before implementing such policies. This paper seeks to estimate trends in factor productivity, technological progress and technological efficiency in the manufacturing sector in India and examines the relative importance of each component. It is observed that technical efficiency was moderate in the period studied, showing declines in the 1990s. Substantial disparity exists among regions and product groups regarding efficiency, technological progress and efficiency changes. It is found that increasing capital intensity was associated with falling productivity, efficiency and technological deceleration in the 1990s. Wider diffusion of technology, rather than greater capital use, is thus recommended for increasing productivity. A regional efficiency matrix is also provided to help states focus on the specific areas in which they have comparative advantages.
Volume (Year): 14 (2007)
Issue (Month): 2 (December)
|Contact details of provider:|| Postal: The United Nations Building, Rajadamnern Nok Avenue, Bangkok 10200|
Phone: (66-2) 288-1234
Fax: (66-2) 288-1000
Web page: http://www.unescap.org/
More information through EDIRC
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.:
- Nigel L. Driffield & Uma S. Kambhampati, 2003. "Trade Liberalization and the Efficiency of Firms in Indian Manufacturing," Review of Development Economics, Wiley Blackwell, vol. 7(3), pages 419-430, 08.
- Devashish Mitra & Beyza Ural, 2008.
"Indian manufacturing: A slow sector in a rapidly growing economy,"
The Journal of International Trade & Economic Development,
Taylor & Francis Journals, vol. 17(4), pages 525-559.
- Devashish Mitra & Beyza Ural, 2009. "Indian manufacturing: A slow sector in a rapidly growing economy," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 18(1), pages 205-205.
- Mitra, Devashish & Ural, Beyza P., 2007. "Indian manufacturing : a slow sector in a rapidly growing economy," Policy Research Working Paper Series 4233, The World Bank.
- Charles I. Jones, 1995. "Time Series Tests of Endogenous Growth Models," The Quarterly Journal of Economics, Oxford University Press, vol. 110(2), pages 495-525.
- Forsund, Finn R. & Lovell, C. A. Knox & Schmidt, Peter, 1980. "A survey of frontier production functions and of their relationship to efficiency measurement," Journal of Econometrics, Elsevier, vol. 13(1), pages 5-25, May.
- Shashanka Bhide & Ric Shand, 2000. "Inequalities in Income Growth in India Before and After Reforms," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 1(1), pages 19-51, March.
- Brox, J.A. & fader, C.A., 1996. "Public Infrastructure, Regional efficiency, and Factor Substitutiability in Atlatic Canada Manufacturing," Working Papers 9602, University of Waterloo, Department of Economics.
- Pravin Krishna & Devashish Mitra, .
"Trade Liberalization, Market Discipline and Productivity Growth: New Evidence From India,"
96-8, Brown University, Department of Economics.
- 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.
- Uma Kambhampati, 2003. "Trade Reforms and the Efficiency of Firms in India," Oxford Development Studies, Taylor & Francis Journals, vol. 31(2), pages 219-233.
- Mukherjee, Dipa & Mathur, Ashok, 2002. "Technological Upgradation in the Informal Manufacturing Sector: Possibilities and Problems," MPRA Paper 4861, University Library of Munich, Germany, revised 2004.
- Mukherjee, Dipa, 2004. "Productivity in the Small Manufacturing Enterprises: Determinants and Policy Issues," MPRA Paper 4867, University Library of Munich, Germany.
- Bauer, Paul W., 1990. "Recent developments in the econometric estimation of frontiers," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 39-56.
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- Ramkishen S. Rajan & Rahul Sen, 2002. "A Decade of Trade Reforms in India," World Economics, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 3(4), pages 87-100, October.
- K.P. Kalirajan & M.B. Obwona & S. Zhao, 1996. "A Decomposition of Total Factor Productivity Growth: The Case of Chinese Agricultural Growth before and after Reforms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 331-338.
- Kim, Euysung, 2000. "Trade liberalization and productivity growth in Korean manufacturing industries: price protection, market power, and scale efficiency," Journal of Development Economics, Elsevier, vol. 62(1), pages 55-83, June.
- Sangho Kim & Jaewoon Koo & Young Hoon Lee, 1999. "Infrastructure And Production Efficiency: An Analysis On The Korean Manufacturing Industry," Contemporary Economic Policy, Western Economic Association International, vol. 17(3), pages 390-400, 07.
When requesting a correction, please mention this item's handle: RePEc:unt:jnapdj:v:14:y:2007:i:2:p:23-54. 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: (Macroeconomic Policy and Development Division, ESCAP)
If references are entirely missing, you can add them using this form.