Productivity Growth Decomposition in the Manufacturing Industries of Food, Beverages, and Tobacco Products in India : A Stochastic Frontier Approach

Authors

  •   Prasanta Kumar Roy Assistant Professor, Department of Economics, Midnapore College (Autonomous), Midnapore, Paschim Medinipur, West Bengal
  •   Purnendu Sekhar Das Retired Professor, Vinod Gupta School of Management, Indian Institute of Technology (IIT) Kharagpur, Kharagpur - 721 302, West Bengal

DOI:

https://doi.org/10.17010/aijer/2018/v7i1/122138

Keywords:

Organized Manufacturing Industries

, Food, Beverages and Tobacco Products, Stochastic Frontier Production Function, Total Factor Productivity Growth, Technological Progress, Technical Efficiency Change, Economic Scale Effect and Allocative Efficiency Effect

C23

, C51, C87

Paper Submission Date

, October 22, 2017, Paper sent back for Revision, December 4, Paper Acceptance Date, February 26, 2018.

Abstract

The study applied stochastic production frontier approach to decompose the sources of total factor productivity growth (TFPG) of the organized manufacturing industries of food, beverages, and tobacco products in India into technological progress, changes in technical efficiency, economic scale effect, and allocative efficiency effect during the period from 1981-82 to 2010-11 during the entire period, during the pre- and post-reform period (1981-82 to 1990-91 and 1991-92 to 2010-11), and also, during two decades in the post-reform period (1991-92 to 2000-01 and 2001-02 to 2010-11) at the three-digit level of disaggregation of industries by NIC'04 and NIC'98. According to the estimated results, technological progress and allocative efficiency effect were the major contributors to TFPG of the organized manufacturing industries of food, beverages, and tobacco products in India during the study period from 1981-82 to 2010-11. Further, TFPG of the organized manufacturing industries of food, beverages, and tobacco products in India declined during the post-reform period (1991-92 to 2010-11), which is mainly accounted for by the decline in TP in this period, as our study revealed.

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Published

2018-02-01

How to Cite

Roy, P. K., & Das, P. S. (2018). Productivity Growth Decomposition in the Manufacturing Industries of Food, Beverages, and Tobacco Products in India : A Stochastic Frontier Approach. Arthshastra Indian Journal of Economics & Research, 7(1), 37–57. https://doi.org/10.17010/aijer/2018/v7i1/122138

Issue

Volume 7, Issue 1, January-February 2018

Section

Economic Development, Technological Change and Growth
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