Aggregate and Sectoral Productivity Growth in the Indian Economy: Analysis and Determinants

Pami Dua and Niti Khandelwal Garg ()
Additional contact information
Niti Khandelwal Garg: Kirori Mal College, University of Delhi

Chapter Chapter 7 in Macroeconometric Methods, 2023, pp 149-180 from Springer

Abstract: Abstract This study analyses and compares estimates of labour productivity growth and total factor productivity growth for the Indian economy as provided by four databases, viz., India KLEMS (IKLEMS), Asian Productivity Organization (APO), Penn World Tables (PWT9.1) and The Conference Board’s Total Economy Database (TED) over the period 1981–2015. It investigates determinants of productivity growth of the Indian economy based on measures of productivity growth from the four datasets using GMM method. It also examines the trends and determinants of productivity growth of the major components of industry and services sectors, viz., manufacturing and market services, respectively. The study finds that while there are differences in the estimates of productivity growth across various datasets that may be attributed to differences in the definitions, methods of measurement and revisions of databases, the trends are broadly similar. Further, the econometric results of the study are robust across all databases and indicate that capital deepening, technological progress, government size, institutional quality, share of agriculture in GDP and openness are significant determinants of productivity growth of the Indian economy over the period 1981–2015. Further, results on the disaggregate analysis indicate that capital deepening, technology, government size, productivity growth of the other sector and openness are significant determinants of labour productivity growth of both manufacturing and market services of India over the period 1981–2015. A comparison of results across the two sectors further suggests that while there exist significant spillover effects between sectors, the impact is stronger from services to manufacturing than the other way around.

Keywords: Measurement of productivity; Labour productivity; TFP; Aggregate and sectoral; GMM (search for similar items in EconPapers)
JEL-codes: C2 O47 (search for similar items in EconPapers)
Date: 2023
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:sprchp:978-981-19-7592-9_7

Ordering information: This item can be ordered from
http://www.springer.com/9789811975929

DOI: 10.1007/978-981-19-7592-9_7

Access Statistics for this chapter

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