Some areas of concern about Indian Manufacturing Sector GDP estimation

Amey Sapre and Pramod Sinha ()
Additional contact information
Pramod Sinha: National Institute of Public Finance and Policy

Working Papers from National Institute of Public Finance and Policy

Abstract: In this paper, we discuss some of the methodological issues involved in the computation of value addition in the manufacturing sector. We deal with (i) problems of blow-up of estimates (ii) choice of indicators in measuring output, and (iii) a possible misclassification of companies in the MCA21 database that can distort the GVA estimates. A sample based blow-up exercise shows that Paid-Up Capital and GVA contribution of firms have no one-to-one correspondence and the method can lead to overestimation of value addition. We construct an alternate method of blow-up by using representative industry GVA growth rates to scale up previous GVA estimates to account for data of unavailable companies. We show that a potential misclassification of companies in the MCA21 can also lead to significant distortion in GVA estimates.

Pages: 35
Date: 2016-08
New Economics Papers: this item is included in nep-mac
Note: Working Paper 172, 2016
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.nipfp.org.in/media/medialibrary/2016/09/WP_2016_172.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:npf:wpaper:16/172

Access Statistics for this paper

More papers in Working Papers from National Institute of Public Finance and Policy
Bibliographic data for series maintained by S.Siva Chidambaram ( this e-mail address is bad, please contact ).