Trends in Productivity Growth Across Large Scale Manufacturing Industries of India: 1973/74 to 1978/79

Dabar-Alai, Parviz

Trends in Productivity Growth Across Large Scale Manufacturing Industries of India: 1973/74 to 1978/79

Parviz Dabar-Alai
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Parviz Dabar-Alai: Tulane University

Indian Economic Review, 1987, vol. 22, issue 2, 151-178

Abstract: The paper uses the 1973/74 and 1979/80 input-output tables to determine the contribution of different inputs, making up the reported fixed assets and raw materials figures in the Annual Survey of Industries, to total output and value added across the large scale manufacturing industries of India. Applying appropriate deflators provides us with the "true" deflated values for the variables. These variables, together with appropriately deflated output and value added figures, are used to estimate Total Factor Productivity (TFPG) rates for the large scale manufacturing industries using the estimating equations of Solow (1957) and Kendrick (1961). We offer explanations for the movements in the TFPG noted for the 1973/74 to 1978/79 period by resorting to our estimates of the capital and labour productivity and to capital intensity figures for the same period. These, as well as the demand for the products of the industries are found to be crucially important in explaining the fluctuations in productive efficiency for almost all of the sectors studied.

Date: 1987
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