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Total Factor Productivity Growth in Indian Manufacturing:A Biennial Malmquist Analysis of Inter-State Data

Arnab K. Deb and Subhash Ray ()
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Arnab K. Deb: International Management Institute, New Delhi

Indian Economic Review, 2014, vol. 49, issue 1, 1-25

Abstract: Using input-output data from the Annual Survey of Industries for the period 1970-71 through 2007-08, this paper compares the pre- and post-reform performances of Indian manufacturing in terms of total factor productivity growth. We use Data Envelopment Analysis to construct a Biennial Malmquist Index of total factor productivity for individual states. Results show that at the all-India level, total factor productivity growth rate in manufacturing is higher during the post-reform period. Although the majority of states experienced accelerated productivity growth, some states did experience decline in productivity after the reforms. Both before and after the reforms technological progress was the most important component of productivity growth in Indian manufacturing.

Keywords: Economic Reform; Total Factor Productivity; Data Envelopment Analysis; Biennial Malmquist Index. (search for similar items in EconPapers)
JEL-codes: C14 C61 D24 L60 O53 (search for similar items in EconPapers)
Date: 2014
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