Productivity and Size of Firms: Evidence from Indian Manufacturing

Chandan Sharma

Economics Bulletin, 2018, vol. 38, issue 2, 791-798

Abstract: This study makes an attempt to analyze the role of firm's size in productivity variation for a large sample of Indian manufacturing firms. For empirical analysis, I utilize a recent survey on the Indian manufacturing, which covers across size, industries and regions of firms. Our results suggest that large size firms have 9-11 percent productivity premia over other sized firms. Also, smaller firms are significantly inferior in terms of productivity performance in comparison to other sized firms. Furthermore, I also find some effects of trade intensity on the productivity of firms, yet, this effect is not found to be quite sizable. Overall, results show a robustness in estimated effects.

Keywords: Small firms; Large firms; TFP (search for similar items in EconPapers)
JEL-codes: D2 L2 (search for similar items in EconPapers)
Date: 2018-04-15
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Citations: View citations in EconPapers (4)

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