Output & Productivity Growth Decomposition: A Panel Study of Manufacturing Industries in India
Published: 2018
Author(s) Name: Prasanta Kumar Roy, Purnendu Sekhar Das, Mihir Kumar Pal |
Author(s) Affiliation: Assistant Professor, Dept. of Economics, Midnapore College, West Bengal, India.
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Abstract
This paper decomposes output and productivity
growth of thirteen 2-digit manufacturing
industries as well as total
manufacturing industry in India during
1981-82 to 2010-11. The four attributes
of output growth are input growth, adjusted
scale effect, technological
progress and technical efficiency growth.
A stochastic frontier model with a
translog production function is used to
estimate the growth attributes of the
manufacturing industries. The results
show that input growth is the major contributor
to output growth whereas total
factor productivity growth (TFPG) sometimes
remains inadequate even though it
has a positive and significant effect on
output growth. Technological progress is
found to be the major contributor to
TFPG and the scale effect has become
important during recent years.
Keywords: N.A.
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