Estimation and decomposition of productivity growth of the organized manufacturing industries of transport equipments in India: An interstate analysis
- Productivity
- 61(4), Jan-Mar, 2020: p.412-426
The study applies stochastic frontier approach to estimate and decompose the sources of total factor productivity growth (TFPG) of the 2-digit manufacturing industries of transport equipments in fifteen major industrialised states in India, as well as in All-India. The periods cover 1981-82 to 2010-11, engulfing the prereform (1981-82 to 1990-91) and post-reform periods (1991-92 to 2010-11), and also during two different decades of the post-reform period, i.e., 1991-92 to 2000-01 and 2001-02 to 2010-11. The components of TFPG are technological progress (TP), technical efficiency change (TEC), economic scale change (SC) and allocation efficiency change (AEC). According to the estimated results, technological progress (TP) is the major contributing factor to the TFPG of the organised manufacturing industries of transport equipments in India and in its fifteen major industrialised states during the period 1981-82 to 2010-11. Further, TFPG of the 2-digit manufacturing industries of transport equipments have increased during the post-reform period (1991-92 to 2010-11) and the increase is mainly accounted for by the increase in TP too for the same period. – Reproduced
Productivity growth, Manufacturing industries, Transport equipments