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Estimation and Decomposition of Productivity Change in Food, Beverages and Tobacco Products Using Frontier Approaches

Indian Journal of Industrial Relations

Volume 56 Issue 4

Published: 2021
Author(s) Name: Prasanta Kumar Roy, Devkumar Nayek, Sebak Kumar Jana and Purnendu Sekhar Das | Author(s) Affiliation: Midnapore College (Autonomous), Midnapore, West Bengal.
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Abstract

The study estimates and decomposes the sources of productivity change of the 4- digit food, beverages and tobacco industries in India during 1998/99 – 2017/18, pre-economic crises period (1998-99 to 2007-08) and post-economic crises period (2008-09 to 2017-18) using Data Envelop Analysis (DEA) and Stochastic Frontier Approach (SFA). The study decomposes the source s of TFPG into technological change (TP), technical efficiency change (TEC) and economic scale change (SC). It was found that the growth rates of TFP in most of the 4-digit industries of food, beverages and tobacco products in India have declined during the post financial meltdown period (2008/09 – 2017/18) and the decline in TFPG of them during the period is mainly accounted for by the decline in technological progress (TP).

Keywords: N.A.

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