Do economic reforms matter for manufacturing productivity? Evidence from the Indian experience

Saibal Ghosh

Economic Modelling, 2013, vol. 31, issue C, 723-733

Abstract: Using data on 3-digit industry for 1981–2004, the study examines the association between total factor productivity and economic reforms. We first obtain the industry-level productivity numbers using advanced econometric techniques and thereafter ascertain the time frame over which economic reforms impact productivity. The evidence suggests that productivity growth is not reliably higher after reforms than prior to reforms. At the sectoral level, the interest rate channel and also the financial accelerator and labor market variables play an important role in explaining productivity improvements. At the macroeconomic level, trade policy, foreign direct investment and credit availability are found to be important in accounting for productivity growth.

Keywords: Economic reforms; Total factor productivity; Levinsohn–Petrin; Indian manufacturing (search for similar items in EconPapers)
JEL-codes: D24 L60 O47 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999313000205
Full text for ScienceDirect subscribers only

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:eee:ecmode:v:31:y:2013:i:c:p:723-733

DOI: 10.1016/j.econmod.2013.01.017

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().