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State Infrastructure and Productive Performance in Indian Manufacturing

Listed author(s):
  • Arup Mitra
  • Aristomène Varoudakis
  • Marie-Ange Véganzonès

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 ...

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Paper provided by OECD Publishing in its series OECD Development Centre Working Papers with number 139.

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Date of creation: 01 Aug 1998
Handle: RePEc:oec:devaaa:139-en
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