Is Liberalisation Associated with Higher Productivity? A Case Study of Punjab Manufacturing

2007 ◽  
Vol 11 (4) ◽  
pp. 53-65
Author(s):  
Ravi Kiran ◽  
Manpreet Kaur
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Manufacturing Sector ◽  
Research Work ◽  
Value Added ◽  
Business Environment ◽  
Empirical Literature ◽  
Factor Productivity ◽  
Policy Regime ◽  
Indian Economy

Productivity is an important concept in the context of the economic growth of a nation. The rate of productivity in accelerating the pace of economic growth is well recognised in both the theoretical as well as empirical literature on growth. The significance of productivity for economic growth was highlighted by Kuznets (1966) when he showed that rapid gain in industrial productivity was the crucial underpinning of Western Industrialization. The Indian Economy was thrust into throes of rapid change in the nineties when the then government of India adopted the New Economic Policy. Liberalization, Privatization and Globalization — became the three planks by which the Indian Economy was propelled into the fusion. This process has had maximum impact on the manufacturing sector, as it has radically changed its business environment and future growth dynamics. All the states of Indian union have been affected differently due to the structural changes. In response to changed policy regime different sub sectors of industry of Punjab have responded differently to adjust optimally. The present research work focuses on studying the response of manufacturing industries in Punjab to the changed policy regime after the advent of liberalisation and privatisation process in India. The present study analyses the trends in value added, labour, capital as well as trends in labour, capital and total factor productivity for sixteen industrial groups on the organised manufacturing sector for the period 1980 — 81 to 2002 — 03 and also for two sub periods, period I, 1980 — 81 to 1990 — 91 and period II, 1991 — 92 to 2002 — 03. The present study tries to examine the trends in partial productivities as well as total factor productivity in the two sub periods to see whether there has been an improvement in productivity in the post 1991 period, the period associated with liberalisation and globalisation. The study tries to analyse the industries which have been showing better performance in terms of partial and total factor productivity and also study the trends of the industries which have not performed well in the period of analysis.

scholarly journals SMEs innovativeness and institutional support system: the local experiences in qualitative perspective. Polish case study

2018 ◽  
Vol 9 (2) ◽  
pp. 333-351 ◽  
Author(s):  
Anna Lewandowska ◽  
Mateusz Stopa
Keyword(s):  
Economic Growth ◽  
Support System ◽  
Support Systems ◽  
Empirical Studies ◽  
Value Added ◽  
Institutional Support ◽  
Business Environment ◽  
Empirical Literature ◽  
Negative Consequences ◽  
Peripheral Regions

Research background: Many contemporary empirical studies and most economic growth theories recognize the importance of innovation as one of the most progressive determinants of socio-economic growth, both in the regional and local perspective. However, much of the empirical literature has discussed the issue of innovativeness and institutional environment without the significant results for small enterprises, especially in peripheral regions. Purpose of the article: The aim of this paper is to evaluate the institutional support system and its impact on SME innovativeness in Podkarpackie region. In analyzing this case, we raise the following two questions: (1) what are the types of innovation strategies of SMEs in Podkarpackie? (2) what are the factors affecting innovation and potential barriers to further use of institutional support systems aimed at the implementation of innovation in enterprises? Methods: Based on the empirical research, we have analyzed the data (individual in-depth interviews) and found out how the entrepreneurs, R&D, business environment institutions, regional and local authorities assess the use of programs and projects dedicated to innovation in the scope of the institutional support system and what are the barriers encountered by entrepreneurs that limit the implementation of innovation. Findings & Value added: The results of our research show that institutional sup-port systems mitigate negative consequences of peripheral localization of the enterprises, where specific innovation strategy has no influence on SME assessment of innovation effectiveness. Innovation is too costly, and SMEs are too weak in peripheral regions, therefore there is great need for reasonable and flexible institutional support systems. However, the peripheral situation influences this institutional system itself, strengthening the mechanisms of self-censorship.

scholarly journals Human Capital Spillovers, Productivity and Growth in the Manufacturing Sector of Pakistan

2009 ◽  
Vol 48 (2) ◽  
pp. 125-140
Author(s):  
Abdul Hamid ◽  
J. Hanns Pichler
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Total Factor Productivity ◽  
Production Technology ◽  
Manufacturing Sector ◽  
Value Added ◽  
Jel Classification ◽  
Factor Productivity ◽  
Major Factors

Manufacturing is an important sector of Pakistan’s economy. The main focus of this paper is to analyse the major factors of value-added growth and productivity in the manufacturing sector by using Translog Production Technology over the period 1971-72 to 2004-05. The empirical findings show that the contribution of productivity and human capital is around one- third of the total value-added growth in manufacturing sector which is less than the contribution attributed to these factors in developed and many other developing countries. Conventional factors like capital and labour are still the mainstay in the value-added growth of Pakistan’s manufacturing sector. JEL classification: O1, O3, O4, O14, O15, O31 Keywords: Human Capital Spillovers, Total Factor Productivity, Absolute and Relative Shares

scholarly journals Income inequality in China 1952-2017: persistence and main determinants

2021 ◽  
Vol 12 (4) ◽  
pp. 863-888
Author(s):  
Marinko Skare ◽  
Luis A. Gil-Alana ◽  
Gloria Claudio-Quiroga ◽  
Romina Pržiklas Družeta
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Total Factor Productivity ◽  
Growth Model ◽  
Gini Index ◽  
Fractional Integration ◽  
Value Added ◽  
Safety Net ◽  
Factor Productivity ◽  
Modeling Framework

Research background: China's economic growth, however remarkable, is due to the Harrod-Domar nature of economic growth and, therefore, limited. The main limitation lies in the extension of the neoclassical growth model and the government need to decrease regional disparities using new migration, urbanization and social policy. Purpose of the article: It is the rising regional disparity in the total factor productivity to cause the income inequality increase (measured by GINI index) in China from 1952?2017. Our paper brings new insight into the main inequality determinants and causes in China, using a fractional integration modeling framework. Methods: Using fractional integration, we find total factor productivity (TFP), real gross domestic product per capita and growth and expenditures for the social safety net and employment effort to have a statistically significant impact on GINI. Income inequality in China is of a persistent nature with the effects of the shocks affecting the GINI index enduring over time. Findings & value added: The results of this study highlight the importance for model/policy changes by the policy makers and practitioners in China to deal with the inequality issue. This involves improving the growth model through innovation and technological advancement, relaxing TFP dependence on the physical inputs (labor and capital) to reduce income inequality.

scholarly journals Modelling Total Factor Productivity in a Developing Economy

2021 ◽  
Vol 66 (1) ◽  
pp. 75-96
Author(s):  
Joel Hinaunye Eita ◽  
Marcio Jose Pedro
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Total Factor Productivity ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Official Development Assistance ◽  
Factor Productivity ◽  
Service Sectors ◽  
Positive Effect

Abstract Total factor productivity is an important driver of economic growth. It is therefore important to understand its determinants. This will help to enhance it and accelerate economic growth. The objective of this paper is therefore to investigate drivers of total factor productivity in Angola. The investigation covers the period 1995 – 2018. It is conducted for selected sectors of the economy. The results show that foreign direct investment has a positive effect on total factor productivity in all sectors. Increase in openness of the economy and depreciation the exchange rate have a positive effect on total factor productivity in the manufacturing sector. However, an increase in these two variables is associated with a decrease in total factor productivity of the primary and service sectors. The results indicate that a rise in inflation is associated with a decrease in total factor productivity in the manufacturing and service sectors. However, an increase in inflation is positively associated with an increase in total factor productivity in the primary sector. Increase in official development assistance impact negatively on total factor productivity in the primary and service sectors. This variable has a positive effect on total factor productivity of the manufacturing sector. The implication of these results is that Angola should pursue policies that attract foreign direct investment in order to ensure sustainable total factor productivity growth. The impact of other drivers such as openness of the economy, inflation, official development assistance and exchange rate depends on sectors. This implies that it is important for Angola to implement policies, which are specific to sectors. This will help to enhance the growth of total factor productivity.

scholarly journals SMEs innovativeness and institutional support system: the local experiences in qualitative perspective. Polish case study

2018 ◽  
Vol 9 (2) ◽  
pp. 333-351
Author(s):  
Anna Lewandowska ◽  
Mateusz Stopa
Keyword(s):  
Economic Growth ◽  
Support System ◽  
Support Systems ◽  
Empirical Studies ◽  
Value Added ◽  
Institutional Support ◽  
Business Environment ◽  
Empirical Literature ◽  
Negative Consequences ◽  
Peripheral Regions

Research background: Many contemporary empirical studies and most economic growth theories recognize the importance of innovation as one of the most progressive determinants of socio-economic growth, both in the regional and local perspective. However, much of the empirical literature has discussed the issue of innovativeness and institutional environment without the significant results for small enterprises, especially in peripheral regions. Purpose of the article: The aim of this paper is to evaluate the institutional support system and its impact on SME innovativeness in Podkarpackie region. In analyzing this case, we raise the following two questions: (1) what are the types of innovation strategies of SMEs in Podkarpackie? (2) what are the factors affecting innovation and potential barriers to further use of institutional support systems aimed at the implementation of innovation in enterprises? Methods: Based on the empirical research, we have analyzed the data (individual in-depth interviews) and found out how the entrepreneurs, R&D, business environment institutions, regional and local authorities assess the use of programs and projects dedicated to innovation in the scope of the institutional support system and what are the barriers encountered by entrepreneurs that limit the implementation of innovation. Findings & Value added: The results of our research show that institutional sup-port systems mitigate negative consequences of peripheral localization of the enterprises, where specific innovation strategy has no influence on SME assessment of innovation effectiveness. Innovation is too costly, and SMEs are too weak in peripheral regions, therefore there is great need for reasonable and flexible institutional support systems. However, the peripheral situation influences this institutional system itself, strengthening the mechanisms of self-censorship.

Impact of Determinants of Industrial Development on Employment and Wages in Indian Manufacturing

2020 ◽  
pp. 18-30
Keyword(s):  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Technical Change ◽  
Positive Impact ◽  
Manufacturing Sector ◽  
Factor Productivity ◽  
Firm Level ◽  
Employment Level ◽  
The Impact ◽  
Level Performance

ABSTRACT The present study was undertaken to explore the evolution of the impact of firm-level performance on employment level and wages in the Indian organized manufacturing sector over the period 1989-90 to 2013-14. One of the major components of the economic reform package was the deregulation and de-licensing in the Indian organized manufacturing sector. The impact of firm-level performance on employment and wages were estimated for Indian organized manufacturing sector in major sub-sectors in India during the period from 1989-90 to 2013-14 of the various variables namely profitability ratio, total factor productivity change, technical change, technical efficiency, openness (export-import), investment intensity, raw material intensity and FECI in total factor productivity index, technical efficiency, and technical change. The study exhibited that all explanatory variables except profitability ratio and technical change cost had a positive impact on the employment level. Out of eight variables, four variables such as net of foreign equity capital, investment intensity, TFPCH, and technical efficiency change showed a positive impact on wages and salary ratio and rest of the four variables such as openness intensity, technology acquisition index, profitability ratio, and technical change had negative impact on wages and salary ratio. In this context, the profit ratio should be distributed as per the marginal rule of economics such as the marginal productivity of labour and capital.

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