Productivity Trends in India's Manufacturing Sectors in the Last Two Decades

Starting in the late 1970s, the Indian authorities implemented a series of reforms aimed at exposing the economy to greater competition and at liberalizing key aspects of economic activity. This paper investigates productivity trends in India's (registered) manufacturing sectors during the 1980...

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Bibliographic Details
Main Author: Unel, Bulent
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2003
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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651 4 |a India 
653 |a Manufacturing industries 
653 |a General Aggregative Models: General 
653 |a Cross-Country Output Convergence 
653 |a Productivity 
653 |a Aggregate Productivity 
653 |a Capital and Total Factor Productivity 
653 |a Cost 
653 |a Industrial productivity 
653 |a Production 
653 |a Manufacturing 
653 |a Aggregate Labor Productivity 
653 |a Unemployment 
653 |a Skills 
653 |a Economic sectors 
653 |a Total factor productivity 
653 |a Aggregate Human Capital 
653 |a Industry Studies: Manufacturing: General 
653 |a Industries: Manufacturing 
653 |a Labor Productivity 
653 |a Macroeconomics: Production 
653 |a Macroeconomics 
653 |a Economic Growth and Aggregate Productivity: General 
653 |a Measurement of Economic Growth 
653 |a Occupational Choice 
653 |a Wages 
653 |a Capacity 
653 |a Labor productivity 
653 |a Intergenerational Income Distribution 
653 |a Human Capital 
653 |a Employment 
653 |a Capital productivity 
653 |a Production and Operations Management 
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520 |a Starting in the late 1970s, the Indian authorities implemented a series of reforms aimed at exposing the economy to greater competition and at liberalizing key aspects of economic activity. This paper investigates productivity trends in India's (registered) manufacturing sectors during the 1980s and 1990s. The main findings of the paper are (i) labor and total factor productivity (TFP) growth in total manufacturing and many of the component sectors since 1980 were markedly higher than that in the preceding two decades, although the extent of the acceleration in TFP growth depends critically on the underlying assumptions about factor elasticities and the assumed structure of the production function; (ii) productivity growth for total manufacturing as well as for many subsectors picked up further after the 1991 reforms; and (iii) classification of the best performing sectors and the weakest performing sectors, based on comparative TFP, remains robust to changes in underlying assumptions