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Input Elasticity of Output and Returns to Scale of Indian Manufacturing During Pre and Post Financial Crisis

Indian Journal of Industrial Relations

Volume 57 Issue 3

Published: 2022
Author(s) Name: Surendranath Mandi, Devkumar Nayek, Maromiya Das, Ipsita Mitra, Shreya Samui and Shrestha Dutta | Author(s) Affiliation: Midnapore College (Autonomous), Midnapore, West Bengal, India
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Abstract

The study estimates input elasticities of output and returns to scale of the organized Indian manufacturing industries during 1998-99 to 2017-18, during the pre-economic crisis period (1998-99 to 2007-08) and the post-economic crisis period (2008- 09 to 2017-18) using the familiar Cobb-Douglas type production function. The results show that there is an upward trend in the labor elasticity of output (eL) and returns to scale parameter during the study period (1998-99 to 2017-18) and labor elasticity of output is lying above the capital elasticity of output during the post-economic crisis period (2008-09 to 2017-18) while the same was lying below the capital elasticity of output (eK) during the pre-economic crisis period (1998-99 to 2007-08).

Keywords: N.A.

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