Productivity Trends in India's Manufacturing Sectors in the Last Two Decades

Productivity Trends in India's Manufacturing Sectors in the Last Two Decades

Author: Mr.Bulent Unel

Publisher: International Monetary Fund

Published: 2003-01-01

Total Pages: 27

ISBN-13: 1451843992

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Starting in the late 1970s, the Indian authorities implemented a series of reforms aimed at exposing the economy to greater competition and at liberalizing key aspects of economic activity. This paper investigates productivity trends in India's (registered) manufacturing sectors during the 1980s and 1990s. The main findings of the paper are (i) labor and total factor productivity (TFP) growth in total manufacturing and many of the component sectors since 1980 were markedly higher than that in the preceding two decades, although the extent of the acceleration in TFP growth depends critically on the underlying assumptions about factor elasticities and the assumed structure of the production function; (ii) productivity growth for total manufacturing as well as for many subsectors picked up further after the 1991 reforms; and (iii) classification of the best performing sectors and the weakest performing sectors, based on comparative TFP, remains robust to changes in underlying assumptions.


Global Productivity

Global Productivity

Author: Alistair Dieppe

Publisher: World Bank Publications

Published: 2021-06-09

Total Pages: 552

ISBN-13: 1464816093

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The COVID-19 pandemic struck the global economy after a decade that featured a broad-based slowdown in productivity growth. Global Productivity: Trends, Drivers, and Policies presents the first comprehensive analysis of the evolution and drivers of productivity growth, examines the effects of COVID-19 on productivity, and discusses a wide range of policies needed to rekindle productivity growth. The book also provides a far-reaching data set of multiple measures of productivity for up to 164 advanced economies and emerging market and developing economies, and it introduces a new sectoral database of productivity. The World Bank has created an extraordinary book on productivity, covering a large group of countries and using a wide variety of data sources. There is an emphasis on emerging and developing economies, whereas the prior literature has concentrated on developed economies. The book seeks to understand growth patterns and quantify the role of (among other things) the reallocation of factors, technological change, and the impact of natural disasters, including the COVID-19 pandemic. This book is must-reading for specialists in emerging economies but also provides deep insights for anyone interested in economic growth and productivity. Martin Neil Baily Senior Fellow, The Brookings Institution Former Chair, U.S. President’s Council of Economic Advisers This is an important book at a critical time. As the book notes, global productivity growth had already been slowing prior to the COVID-19 pandemic and collapses with the pandemic. If we want an effective recovery, we have to understand what was driving these long-run trends. The book presents a novel global approach to examining the levels, growth rates, and drivers of productivity growth. For anyone wanting to understand or influence productivity growth, this is an essential read. Nicholas Bloom William D. Eberle Professor of Economics, Stanford University The COVID-19 pandemic hit a global economy that was already struggling with an adverse pre-existing condition—slow productivity growth. This extraordinarily valuable and timely book brings considerable new evidence that shows the broad-based, long-standing nature of the slowdown. It is comprehensive, with an exceptional focus on emerging market and developing economies. Importantly, it shows how severe disasters (of which COVID-19 is just the latest) typically harm productivity. There are no silver bullets, but the book suggests sensible strategies to improve growth prospects. John Fernald Schroders Chaired Professor of European Competitiveness and Reform and Professor of Economics, INSEAD


China’s Productivity Convergence and Growth Potential—A Stocktaking and Sectoral Approach

China’s Productivity Convergence and Growth Potential—A Stocktaking and Sectoral Approach

Author: Min Zhu

Publisher: International Monetary Fund

Published: 2019-11-27

Total Pages: 46

ISBN-13: 1513515357

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China’s growth potential has become a hotly debated topic as the economy has reached an income level susceptible to the “middle-income trap” and financial vulnerabilities are mounting after years of rapid credit expansion. However, the existing literature has largely focused on macro level aggregates, which are ill suited to understanding China’s significant structural transformation and its impact on economic growth. To fill the gap, this paper takes a deep dive into China’s convergence progress in 38 industrial sectors and 11 services sectors, examines past sectoral transitions, and predicts future shifts. We find that China’s productivity convergence remains at an early stage, with the industrial sector more advanced than services. Large variations exist among subsectors, with high-tech industrial sectors, in particular the ICT sector, lagging low-tech sectors. Going forward, ample room remains for further convergence, but the shrinking distance to the frontier, the structural shift from industry to services, and demographic changes will put sustained downward pressure on growth, which could slow to 5 percent by 2025 and 4 percent by 2030. Digitalization, SOE reform, and services sector opening up could be three major forces boosting future growth, while the risks of a financial crisis and a reversal in global integration in trade and technology could slow the pace of convergence.


Industrial Growth in India

Industrial Growth in India

Author: Isher Judge Ahluwalia

Publisher: Delhi ; New York : Oxford University Press

Published: 1985

Total Pages: 270

ISBN-13:

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The importance of industrialization as a means of achieving rapid growth and prosperity has long been recognized in the thinking on development strategy for India; but the country's industrial potential has been far from fully exploited.


Productivity in Indian Manufacturing

Productivity in Indian Manufacturing

Author: Vinish Kathuria

Publisher: Routledge

Published: 2014-09-25

Total Pages: 302

ISBN-13: 1317559789

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This volume comprehensively captures trends in productivity and its determinants in the post-reform period for Indian manufacturing. It provides an up-to-date survey of different methods employed in measuring productivity and their applications across organized and unorganized sectors, including food, beverages, furniture, gems, chemicals, petroleum and rubber, metals and minerals, paper products, publishing, textiles, etc. The essays examine the uneven impact of economic reforms and growth on the performance of the manufacturing sector. This will be especially useful to students and scholars of economics, business and management, policymakers and governmental agencies, particularly those interested in Indian economy and manufacturing.


J-Curve of Productivity and Growth

J-Curve of Productivity and Growth

Author: Mr.Arvind Virmani

Publisher: International Monetary Fund

Published: 2011-07-01

Total Pages: 35

ISBN-13: 1455298735

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Most estimates of Indian manufacturing productivity find a slowdown in the 1990s. This has puzzled analysts, given that 1990s reforms were deeper and wider than the 1980s reforms that raised the growth rate of the Indian economy by 2 per cent points. This paper tests the hypothesis of the J curve of Productivity and Growth following major liberalization and finds it to be broadly supported by the data: Technological obsolescence, gradual adoption of new technology and learning by doing result in negative effects on measured productivity.


Reform and Productivity Growth in India

Reform and Productivity Growth in India

Author: Dibyendu Maiti

Publisher: Routledge

Published: 2014-01-03

Total Pages: 261

ISBN-13: 1134708289

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During the last two decades, India has experienced a high growth rate, but the contribution from productivity growth and technological progress has been very low. This has resulted in a poor performance in the employment generation in the formal sector, and this book examines this phenomenon and the Indian growth pattern. Using primary and secondary data, the book looks at the impact of economic reform on technological change and total productivity growth, and in turn its impact on the labour market. It examines the effect of trade reform on the form and functioning of labour markets, and goes on to look at the impact of the global financial crisis on the Indian labour market. Offering interesting modelling exercises and empirical verifications that bring fresh ideas and new content, this book is of interest to academics in the fields of development economics, international economics and South Asian studies.


From “Hindu Growth” to Productivity Surge

From “Hindu Growth” to Productivity Surge

Author: Mr.Dani Rodrik

Publisher: International Monetary Fund

Published: 2004-05-01

Total Pages: 44

ISBN-13: 1451850026

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This paper explores the causes of India's productivity surge around 1980, more than a decade before serious economic reforms were initiated. Trade liberalization, expansionary demand, a favorable external environment, and improved agricultural performance did not play a role. We find evidence that the trigger may have been an attitudinal shift by the government in the early 1980s that unlike the reforms of the 1990s, was probusiness rather than promarket in character, favoring the interests of existing businesses rather than new entrants or consumers. A relatively small shift elicited a large productivity response, because India was far away from its income-possibility frontier. Registered manufacturing, which had been built up in previous decades, played an important role in determining which states took advantage of the changed environment.


The Factory-free Economy

The Factory-free Economy

Author: Lionel Fontagné

Publisher: Oxford University Press

Published: 2017

Total Pages: 383

ISBN-13: 019877916X

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An economic analysis of de-industrialization that considers the ongoing transformation of the industrial economies and the consequences for economic policy.