Intermediate Input Technological Progress Translated into Neoclassical Terms—A Study with Reference to the Indian Economy

Partha Pratim Ghosh ()
Additional contact information
Partha Pratim Ghosh: St. Xavier’s College (Autonomous)

A chapter in Applications of the Input-Output Framework, 2018, pp 39-62 from Springer

Abstract: Abstract While the demand-driven Leontief system leads to a reduction in total output when there is increased efficiency of intermediate inputs, in the neoclassical system technological progress must lead to higher output. This paper presents an explanation of technical progress that resolves the apparent paradox using India’s Input–Output table for 2011–12. The idea of technological improvements has been taken from two current programs of development, namely Pradhan Mantri Krishi Sinchai Yojana (PMKSY) and Pradhan Mantri Gram Sadak Yojana (PMGSY) that would lead to increased efficiency of irrigation and water resource usage and increased efficiency of road connectivity across the country in a multi-sector framework. This paper calculates elasticity of final demands with respect to intermediate inputs, as also price effects arising out of changes in Input–Output coefficients. Results indicate that in order to enhance efficiency of intermediate inputs used in the agricultural sectors, it is necessary to adopt similar efficiency augmenting programs in other sectors of the economy as well. This will lead to a balanced increase in productivity of all sectors and affect agriculture more favorably.

Keywords: Input–Output; Agriculture; Efficiency of intermediate inputs; Technological improvement (search for similar items in EconPapers)
JEL-codes: C67 D57 O33 O5 Q16 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:prbchp:978-981-13-1507-7_3

Ordering information: This item can be ordered from
http://www.springer.com/9789811315077

DOI: 10.1007/978-981-13-1507-7_3

Access Statistics for this chapter

More chapters in Springer Proceedings in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().