Review of Professional Management- A Journal of New Delhi Institute of Management

M. Manonmani ¹

Affiliations
1 Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore-641043, IN

Abstract

The production function method for the measurement of potential output growth takes into account different sources of an economy's productive capacity, namely of labour, capital and total factor productivity later on including information on technological and allocative efficiency. A production function shows the technological relationship between the maximum output obtainable from a given set of inputs and the relationship between inputs in the existing state of technological change. In this paper , a Cobb Douglas form of production function has been used to measure the contribution of labour, capital and technology for Indian Economy. The basic data source of the study was Annual Survey of Industries (ASI) published by Central Statistical Organization (CSO), Government of India covering the period from1999-00 to 2010-11. Findings of the statistical analysis are that out of five sectors, three sectors namely Public Limited Company, Government Department Enterprises and Aggregate Corporate sector had recorded increasing returns to scale and the remaining sectors namely the Private Limited company and the Public corporation recorded decreasing returns to scale. Results also show that percentage share of wages was high compared to the percentage share of capital in all the sectors.

Full Text

   

M. Manonmani ¹, G. Nithya ¹

Affiliations
1 Avinashilingam Institute for Homescience and Higher Education for Women, Coimbatore-641043, IN

Abstract

A well developed industrial sector covering various different areas is vital to economic development of a country. Since a variety of different industrial sectors are connected with each other thorough inter dependence of demand and supply, a well balanced industrial growth is at the centre of economic development. Estimation and analysis Productivity growth and productivity differential in manufacturing sector have been the most popular areas of applied economic research as it is based on the well-defined analytical framework of the standard economic theory of productivity. The reference period chosen for the study covers both pre and post liberalization period. The pre liberalization period covers between 1972-73 and 1990-91 and post liberalization period between 1991-92 and 2009-10. In this paper, a Discriminant Function Analysis is applied to find out the dominant factors which determine the productivity in manufacturing sector of Indian states. It was found that time factor was the first dominant factor to determine the pre and post liberalization period labour productivity. Both in the pre and post liberalization period capital productivity was dominated by wage rate. In determining the total factor productivity net value added was the prime factor between pre and post liberalization period.

Full Text