 Infrastructure, Information & Communication Technology and Firms’ Productive Performance of the Indian ManufacturingMarie-Ange Véganzonès, Arup Mitra () and Chandan Sharma Post-Print from HAL Abstract: The Make in India program aims at building best-in-class manufacturing set up in the country. However, public infrastructure is considered to be one of the biggest obstacles for the growth of manufacturing in the country. In this context, this paper examines the role of infrastructure and information & communication technology (ICT) on total factor productivity (TFP) and technical efficiency (TE) of the Indian manufacturing sector for the period 1994-2010. We use advanced estimation techniques to overcome problems of non-stationary, omitted variables, endogeneity and reverse causality by applying fully modified OLS, panel cointegration and System GMM. Estimation results suggest that the impact of infrastructure and ICT is rather strong. Interestingly, sectors exposed to relatively more to foreign competition (e.g. Transport Equipment, Textile, Chemicals, Metal & Metal Products) are more sensitive to infrastructure. In the light of these findings, policy implications are brought out. Keywords: Infrastructure; Information & Communication Technology; Firms’ Productivity; Manufacturing; India (search for similar items in EconPapers) Published in VIIIth North American Productivity Workshop (NAPW), Jul 2014, Ottawa, Canada There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03058510 Access Statistics for this paper More papers in Post-Print from HAL |
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