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Das, Purnendu Sekhar
- Interstate Analysis of the Decomposition of Total Factor Productivity Growth in the Organized Manufacturing Industries in India:A Stochastic Frontier Approach
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Authors
Affiliations
1 Department of Economics, Midnapore College, Midnapore, Paschim Medinapur 721101, West Bengal, IN
2 Vinod Gupta School of Management, IIT, Kharagpur, Paschim Medinapur, West Bengal, IN
3 Scientist, Economic Research Unit, ISI, Kolkata, IN
1 Department of Economics, Midnapore College, Midnapore, Paschim Medinapur 721101, West Bengal, IN
2 Vinod Gupta School of Management, IIT, Kharagpur, Paschim Medinapur, West Bengal, IN
3 Scientist, Economic Research Unit, ISI, Kolkata, IN
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Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics, Vol 57, No 2 (2015), Pagination: 135-160Abstract
According to the conventional 'Solow' residual approach or index number approach, the concept of technological progress and total factor productivity growth (TFPG) are used synonymously and TFPG is shown by solely shifting the production possibility frontier. But recent development of TFP estimation acknowledges that along with technological progress, changes in technical efficiency, economic scale effect and changes in allocative efficiency also contribute to productivity growth. The study applies a stochastic frontier production approach to decompose the sources of TFPG of the total organized manufacturing industries in fifteen major industrialized states in India as well as in all-India into four afore-mentioned components during the period from 1981-1982 to 2010-2011, during the entire period, during the pre-reform period (1981-1982 to 1990-1991) and post-reform period (1991-1992 to 2010- 2011), and also during two different decades of the post-reform period, i.e., 1991-1992 to 2000-2001 and 2001-2002 to 2010-2011. According to the estimated results, technological progress (TP) is the main contributor to the TFPG of the organized manufacturing from 1981-1982 to 2010-2011. But the TFPG declined during the post-reform period which is accounted for by the decline in TP.
References
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- Decomposition of Output and Productivity Growth in the 2-Digit Manufacturing Industries in India:An Interstate Analysis
Abstract Views :457 |
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Authors
Affiliations
1 Department of Economics, Midnapore College, Midnapore, Paschim Medinipur 721101, West Bengal, IN
2 Vidyasagar University, Midnapore, West Bengal and Vinod Gupta School of Management, IIT, Kharagpur, Paschim Medinipur 721302, West Bengal, IN
1 Department of Economics, Midnapore College, Midnapore, Paschim Medinipur 721101, West Bengal, IN
2 Vidyasagar University, Midnapore, West Bengal and Vinod Gupta School of Management, IIT, Kharagpur, Paschim Medinipur 721302, West Bengal, IN
Source
Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics, Vol 61, No 1 (2019), Pagination: 63-96Abstract
The study examines and applies the theoretical foundation of the decomposition of output total factor productivity growth (TFPG) of the 2-digit manufacturing industries in India and in its fifteen major industrialized states from 1981-1982 to 2010-2011, during the pre- and post-reform period (1981-1982 to 1990- 1991and 1991-1992 to 2010-2011). Output growth is decomposed into input growth effect and TFPG where the three attributes of TFPG are adjusted scale effect technological progress and technical efficiency change. A stochastic frontier model with a translog production function is used to estimate the growth attributes of TFP of the 2-digit manufacturing industries in 15 major industrialized states vis-a-vis all-India. Empirical results show that input growth effect is the major contributor to output growth, whereas TFPG sometimes remains inadequate even though it has a significant effect on output growth. Technological progress is found to be the major contributor to TFPG and the decline in it of the 2-digit manufacturing industries in almost all the states as well as in all-India during the post-reform period is due to decline in technological progress of the same. The scale effect has also become important in recent years, but the impact of technical efficiency effect becomes negative in most cases. The relevant policy implication for a sustainable post-reform Indian economy is the need to improve TFPG components of the manufacturing industries for the overall balanced growth of the economy.References
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Abstract Views :397 |
PDF Views:1
Authors
Affiliations
1 Garhbeta College, Paschim Medinipur 721127, West Bengal, IN
2 VGSOM, Indian Institute of Technology, Kharagpur, Paschim Medinipur 721102, West Bengal, IN
1 Garhbeta College, Paschim Medinipur 721127, West Bengal, IN
2 VGSOM, Indian Institute of Technology, Kharagpur, Paschim Medinipur 721102, West Bengal, IN
Source
Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics, Vol 61, No 2 (2019), Pagination: 156-174Abstract
This paper tries to understand the dynamics of inflation of India through the lens of P-star approach for the period 1952-1953 to 2013-2014. The equilibrium values for the relevant variables are estimated using two versions of Hodrick-Prescott (HP) filter. Three different types of models have been tested following the P-star approach- Price Gap Model, Output Gap Model and Velocity Gap Model. The study finds satisfactory fit for all models, as all of them reveal expected signs with statistically significant coefficients for the output gap and velocity gap variables. However, forecasting performance shows Output Gap Model as the most appropriate model in understanding inflation in India.References
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