Economic Reforms and Total Factor Productivity Growth in the Indian Unorganized Manufacturing Sector: Spatial and Temporal Analysis

2007 ◽  
Author(s):  
Rajesh Raj ◽  
Malathy Duraisamy
Keyword(s):  
Total Factor Productivity ◽  
Productivity Growth ◽  
Manufacturing Sector ◽  
Temporal Analysis ◽  
Economic Reforms ◽  
Total Factor Productivity Growth ◽  
Factor Productivity ◽  
Spatial And Temporal Analysis

scholarly journals Distinction between Informal and Unorganized Sector: A Study of Total Factor Productivity Growth for Manufacturing Sector in India

2011 ◽  
Vol 3 (5) ◽  
pp. 296-310
Author(s):  
Indrajit Bairagya
Keyword(s):  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Informal Sector ◽  
Productivity Growth ◽  
Manufacturing Sector ◽  
Total Factor Productivity Growth ◽  
Scale Efficiency ◽  
Factor Productivity ◽  
Efficiency Change ◽  
Unorganized Sector

Since its very onset, the concept and definition of the informal sector has been a subject of debate both at the national and international levels. Existing literature uses the terms ‘informal sector’ and ‘unorganized sector’ interchangeably. However, in India, the characteristics of enterprises in the informal and non-informal unorganized manufacturing sectors are different and, thus, it is not justifiable to consider the informal and unorganized sector interchangeably for the manufacturing sector. Thus, the objective of this paper is to test the hypothesis on whether or not the total factor productivity growth (TFPG) of the informal manufacturing sector is different from the non-informal unorganized manufacturing sector. TFPG is decomposed into technical efficiency change and technological change. Later, technical efficiency change is further decomposed by pure efficiency change and scale efficiency change. Results show that the average TFPG of the non-informal sector is higher than the informal sector. The informal sector heavily concentrates in own account small enterprises, whereas the non-informal unorganized sector concentrates only in directory manufacturing enterprises (DME). Due to large in size, DME avails the advantages of economies of scale, which, in turn, helps the units for more growth in terms of total factor productivity growth. The main reason for productivity decrease of the enterprises, besides technology regress and the lack of adequate investments, is the limitation of activities and scale along with the optimal allocation of resources. This study provides a basis on how policies can be designed for enhancing the total factor productivity growth of the informal sector.

Total Factor Productivity Growth Based on Resource and Non Resource Based Industries of the Manufacturing Sector, 2000-2005

2013 ◽  
Vol 64 (1) ◽  
Author(s):  
Noorasiah Sulaiman ◽  
Norfadila Fadzil
Keyword(s):  
Total Factor Productivity ◽  
Productivity Growth ◽  
Manufacturing Sector ◽  
Total Factor Productivity Growth ◽  
Factor Productivity ◽  
Input Output ◽  
Intermediate Inputs ◽  
Industrial Manufacturing ◽  
Tfp Growth

This paper examines total factor productivity (TFP) growth in resource and non resource based industries of the Malaysian manufacturing sector. The growth in TFP is examined between 2000 and 2005. Unlike previous studies that use one source of data from Industrial Manufacturing Survey (IMS), this research combines two sources of data–Malaysian Input-Output Tables and IMS. The motivation for this study was brought about due to the need to present a different method for estimating TFP growth using the input-output methodology. The result from this study for resource and non resource based industries reveals that the TFP growth is relatively low for both industries. In addition, the major source of change in TFP of the both industries is contributed by intermediate inputs, while the contribution of labour and capital is substantially low. 

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