Mechanisation and factor productivities: the case of Kerala coir industry

K. K. Raseena ()
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K. K. Raseena: Sri C Achutha Menon Government College

Journal of Social and Economic Development, 2024, vol. 26, issue 1, No 6, 122-131

Abstract: Abstract The present research is an attempt to evaluate the impact of mechanisation on the performance of coir industry of Kerala using factor productivities. The analysis is expected to yield wider policy implications regarding mechanisation of coir industry for its betterment. The study uses primary data collected from 115 coir manufacturers of Alappuzha District by using simple random sampling. It starts with measuring the degree of mechanisation. Then various firms under coir industry of Kerala are categorised in to 4 levels of mechanisation, namely, traditional firms, low mechanised firms, medium mechanised firms and high mechanised firms. The study highlights that, at higher levels of mechanisation, the firms cannot utilise their full capacity mainly due to market inefficiencies. Both the raw materials and the product markets are inefficient to tap the full capacity of the firms. The existence of X-inefficiency may be one of the reasons for low level of mechanisation within the industry. This analysis calls for government-market interventions for better performance of this industry. At the same time the study highlights that the lower mechanised firms can perform better only if the production techniques are up to date.

Keywords: Coir industry; Firm performance; Factor productivity; Impact of mechanisation; Measurement of mechanisation; Mechanisation index (search for similar items in EconPapers)
JEL-codes: D22 D24 L60 O14 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s40847-023-00254-z

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