TITLE:
Keeping It Simple: Comparative Analysis of TFP across Manufacturing Industries and Major States of India
AUTHORS:
Awadhesh Pratap Singh
KEYWORDS:
Total Factor Productivity, Growth Accounting, Labor Productivity, India
JOURNAL NAME:
Theoretical Economics Letters,
Vol.7 No.6,
October
30,
2017
ABSTRACT: The measurement of total factor productivity in Indian
economic development has been greatly debated especially after economic reforms
set in. While a fair amount of research is done on this subject, however the
findings were lost in the shadow of complex econometric techniques. This paper
is an honest attempt to simplify the complex area of productivity for a
geographically multifaceted country—India. The paper carries out a
comprehensive and comparative TFP (total factor productivity) analysis across
19 major India states and their 15 Indian manufacturing industries. The intent
of this paper is fourfold. First, it estimates TFP using a simple technique (growth accounting). Second, it performs the state and the industry level comparative TFP analysis. Third, it discusses the outliers and justifies their outcomes and fourth provides
recommendations for policy making and states the implications.