Productivity and Technical Efficiency in Indian States’ Manufacturing: The Role of Infrastructure

Marie-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; Firms’ Technical Efficiency; Manufacturing; India (search for similar items in EconPapers)
Date: 2011-07-04
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Published in XVI World Congress of the International Economic Association (IEA), Jul 2011, Beijin, China

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

Related works:
Working Paper: Productivity and Technical Efficiency in Indian States’ Manufacturing: The Role of Infrastructure (2011)
Journal Article: Productivity and Technical Efficiency in Indian States' Manufacturing: The Role of Infrastructure (2002)
Working Paper: Productivity and Technical Efficiency in Indian States’ Manufacturing: The Role of Infrastructures (2002)
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:hal:journl:hal-03058779

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().