Does Catching-up or Innovations Drive Total Factor Productivity Growth in Indian Sugar Industry? A Non-Parametric Analysis

Nitin Arora ()

Indian Economic Review, 2013, vol. 48, issue 2, 351-380

Abstract: The study is an endeavor to identify the sources of Total Factor Productivity (TFP) growth in Indian sugar industry at both aggregated and regional levels using non-parametric Malmquist Productivity Index (MPI). The empirical analysis is confined to the period of 31 years from 1974/75 to 2004/05, which has been further divided into two sub-periods on the basis of changes in macroeconomic policy governing the Indian economy: i) Prereforms period (1974/75 to 1990/91); and ii) Post-reforms period (1991/92 to 2004/05). The analysis reveals that TFP growth is primarily attributable to overall efficiency change in general and managerial efficiency change (PECH) in particular during the entire and pre-reforms period. However, during the post-reforms period, Hicks neutral type of technical progress observed to be the dominant source whereas efficiency change observed to be restricting the potential TFP growth rates in Indian sugar industry. The analysis of factors affecting TFP growth discloses that improved mechanization, profitability, industrial concentration and reduction in government interference are the possible policy alternatives to improve TFP growth in Indian sugar industry.

Keywords: Malmquist Productivity Index; Bootstrapping; Indian Sugar Industry (search for similar items in EconPapers)
JEL-codes: C02 C69 D24 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:dse:indecr:0076

Ordering information: This journal article can be ordered from
http://www.ierdse.org/

Access Statistics for this article

Indian Economic Review is currently edited by Pami Dua (Editor) & Ram Singh (Associate Editor) and Sunil Kanwar

More articles in Indian Economic Review from Department of Economics, Delhi School of Economics University of Delhi, Delhi 110 007. Contact information at EDIRC.
Bibliographic data for series maintained by Pami Dua ().