Productivity and efficiency of labour intensive manufacturing industries in India: an empirical analysis
Purna Chandra Parida and
Kailash Pradhan ()
International Journal of Development Issues, 2016, vol. 15, issue 2, 130-152
Purpose - The study makes an attempt to identify labour intensity of organized manufacturing industries in India using the Annual Survey of Industry (ASI) data at 3-digit level. It estimates Total Factor Productivity Growth (TFPG) and technical efficiency for both labour intensive and all manufacturing industries during the pre- and post-reforms periods. Design/methodology/approach - The study uses three approaches to estimate TFPG. They are growth accounting (GA) (non-parametric), production function with correction for endogeneity – Levinsohn-Petrin (LP) (semi-parametric) and stochastic production frontier analysis (SFA) (parametric). The study uses ASI data published by Central Statistical Organisation (CSO), Government of India for the period 1980-81 to 2007-08 for the analysis. Findings - The study finds that, the rate of decline of the labour intensity is more pronounced in the case of labour intensive industries than all the manufacturing industries. The results of Growth Accounting (GA) method suggest that the TFPG of labour intensive industries has declined continuously from the pre-reforms period to the post-reforms period. Similarly, Levinsohn-Petrin (LP) method indicate a continuous decline in TFPG of labour intensive manufacturing industries during the post-reforms period. Interestingly, the results of Stochastic Production Frontier (SPF) method also corroborate the findings of earlier two methods at the aggregate level but vary at a certain degree at the disaggregated level. Originality/value - This paper is useful in the context of India considering the importance given to labour intensive industries by the present government in terms of reviving the sector and improving the productivity and output.
Keywords: Productivity; Efficiency; Labour intensity; Manufacturing sector in India; D24; L60; O30 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.emeraldinsight.com/10.1108/IJDI-12-2015 ... RePEc&WT.mc_id=RePEc (text/html)
Access to full text is restricted to subscribers
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eme:ijdipp:v:15:y:2016:i:2:p:130-152
Ordering information: This journal article can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
Access Statistics for this article
International Journal of Development Issues is currently edited by Dr Dilip Dutta
More articles in International Journal of Development Issues from Emerald Group Publishing
Bibliographic data for series maintained by Virginia Chapman ().