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State Infrastructure and Productive Performance in Indian Manufacturing

Author

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  • Arup Mitra
  • Aristomène Varoudakis
  • Marie-Ange Véganzonès

Abstract

We present estimates, at the State level, of Indian manufacturing Total Factor Productivity (TFP) and Technical Efficiency (TE) from the estimation of production functions for 17 manufacturing industries from 1976 to 1992. Our analysis relates TFP and TE to the availability of infrastructure. We construct an aggregate infrastructure indicator from 12 indicators of core, social, and economic infrastructure. According to our findings, differences across States in manufacturing TFP and TE performance are accounted for, to a significant extent, by differences in infrastructure endowments. Our estimations make it possible, moreover, to measure the productive impact of the various types of infrastructure, as well as to identify the manufacturing industries where productivity gains are relatively more constrained by inadequate infrastructure. The findings could help in designing an effective policy of infrastructure investment, supporting both recent economic reforms towards industrial restructuring and efforts aiming to promote regional convergence in India ... Dans ce document sont présentées des estimations au niveau des États de l’Inde, de la Productivité globale des facteurs (PGF) et de l’éfficacité technique (ET) dans l’industrie manufacturière, à partir de l’estimation de fonctions de production pour 17 branches industrielles sur la période 1976–92. Notre analyse fait dépendre la PGF et l’ET de la disponibilité en infrastructures. Nous élaborons un indicateur composite d’équipement en infrastructures à partir de 12 indicateurs désagrégés d’infrastructures physiques, sociales et économiques. Nos résultats montrent que les différences régionales de PGF et d’ET dans l’industrie manufacturière sont expliquées de façon très significative par les disparités d’équipement en infrastructures selon les États. Nos estimations permettent, en outre, de quantifier l’impact productif des divers types d’infrastructures, de même que les branches manufacturières les plus contraintes par leurs insuffisances. Nos résultats visent à la mise en place ...

Suggested Citation

  • Arup Mitra & Aristomène Varoudakis & Marie-Ange Véganzonès, 1998. "State Infrastructure and Productive Performance in Indian Manufacturing," OECD Development Centre Working Papers 139, OECD Publishing.
  • Handle: RePEc:oec:devaaa:139-en
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    File URL: http://dx.doi.org/10.1787/765460688775
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    Cited by:

    1. Ejaz Ghani & Arti Grover Goswami & William R. Kerr, 2016. "Highway to Success: The Impact of the Golden Quadrilateral Project for the Location and Performance of Indian Manufacturing," Economic Journal, Royal Economic Society, vol. 126(591), pages 317-357, March.
    2. Ali, Jabir, 2007. "Productivity and Efficiency in Indian Meat Processing Industry: A DEA Approach," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 62(4).
    3. Charles R. Hulten & Sylaja Srinivasan, 1999. "Indian Manufacturing Industry: Elephant or Tiger? New Evidence on the Asian Miracle," NBER Working Papers 7441, National Bureau of Economic Research, Inc.
    4. Ghani, Ejaz & Goswami, Arti Grover & Kerr, William R., 2013. "Highway to success in India : the impact of the golden quadrilateral project for the location and performance of manufacturing," Policy Research Working Paper Series 6320, The World Bank.
    5. Ghani, Ejaz & Goswami, Arti Grover & Kerr, William R., 2013. "The golden quadrilateral highway project and urban/rural manufacturing in India," Policy Research Working Paper Series 6620, The World Bank.
    6. Causa, Orsetta & Cohen, Daniel, 2006. "Industrial Productivity in 51 Countries, Rich and Poor," CEPR Discussion Papers 5549, C.E.P.R. Discussion Papers.

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