scholarly journals Components of Total Factor Productivity Growth of the 2-Digit Manufacturing Industries in Karnataka: A Stochastic Frontier Approach

2020 ◽  
Vol 19 (1) ◽  
pp. 47-74
Author(s):  
Prasanta Kumar Roy ◽  
Sebak Kumar Jana ◽  
Devkumar Nayek

The study estimates the sources of total factor productivity growth (TFPG) of the 2-digit manufacturing industries in Karnataka during the period from 1981-82 to 2010-11, during the entire study period, during the pre & post reform period (1981-82 to 1990-91 and 1991-92 to 2010-11) and also during two different decades of the post-reform period, i.e., during 1991-92 to 2000-01 and 2001-02 to 2010-11 using stochastic frontier approach. Technological progress is found to be the major driving force of TFPG and the decline in TFPG of the state’s manufacturing industries during the post-reform period is mainly accounted for by the decline in technological progress (TP) of the same during that period.

2020 ◽  
Vol 99 (8) ◽  
pp. 3853-3864
Author(s):  
Elysée M. Houedjofonon ◽  
Nestor R. Ahoyo Adjovi ◽  
Sylvain Kpenavoun Chogou ◽  
Barthélemy Honfoga ◽  
Guy A. Mensah ◽  
...  

2018 ◽  
Vol 66 (1-2) ◽  
pp. 25-41
Author(s):  
Prasanta Kumar Roy

This article examines and applies the theoretical foundation of the decomposition of output and total factor productivity growth (TFPG) of the aggregate manufacturing industries in 15 major industrialised states in India as well as in all-India during the period from 1981–1982 to 2010–2011, during the entire period, during the pre-reform period (1981–1982 to 1990–1991) and post-reform period (1991–1992 to 2010–2011), and also during two different decades of the post-reform period, that is, during 1991–1992 to 2000–2001 and 2001–2002 to 2010–2011. Output growth is decomposed into input growth effect and TFPG where the three attributes of TFPG are adjusted scale effect, technological progress (TP) and technical efficiency change. A stochastic frontier model with a translog production function is used to estimate the growth attributes of output and total factor productivity (TFP). The empirical results show that input growth is the major contributor to output growth, whereas TP is found to be the major contributor to TFPG and the decline in TFPG of the organised manufacturing sector in India and in its major industrialised states during the post-reform period is mainly due to the decline in TP of the same during that period. JEL Codes: C23, D24, L6, O47


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