 Did Productivity Converge in Manufacturing Sector across Indian States?Badri Rath and S.madheswaran Regional and Sectoral Economic Studies, 2010, vol. 10, issue 2, 185-200 Abstract: This paper aims to explore the labour productivity convergence in manufacturing sector across fifteen major Indian states during 1979-80 to 2000-01, using cross-section analysis. The analysis examines the convergence hypothesis taking both absolute and conditional convergence into consideration. The results indicate that though absolute ? convergence in labour productivity does not exist during overall period of analysis, labour productivity does converge in pre-reform period. Analyzing conditional convergence using dynamic panel model, we find that labour productivity in rich states grew faster with reasonably high initial productivity levels, indicating a divergence across the states. In light of the above-affirmed empirical results, the study suggests that better endeavors for productivity growth of manufacturing sector in backward states are quite essential. The government should give more emphasize to the labour intensive manufacturing industries which can absorb the mass un-skilled labour force in eastern and northern states of India. Keywords: Labour productivity; Convergence; Indian manufacturing; Dynamic Panel Model (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eaa:eerese:v:10:y2010:i:2_7 Ordering information: This journal article can be ordered from Access Statistics for this article More articles in Regional and Sectoral Economic Studies from Euro-American Association of Economic Development |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.