ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Bakul H DholakiaSubscribe to Bakul H Dholakia

Functional Distribution of National Income in India

in India Bakul H Dholakia Apart from providing insights into the relationship between economic development and functional distribution of national income, estimates of factor shares in a developing country serve several other useful purposes. This article estimates the functional distribution of national income in India over the period 1960-61 to 1991-92. An attempt has been made to estimate the factor shares of labour, land and capital (including enterprise) not only for the economy as a whole but also for the broad categories of primary, secondary and tertiary sectors as well as the public and private sectors.

Total Factor Productivity Growth in Indian Industry

Total Factor Productivity Growth in Indian Industry Ravindra H Dholakia Bakul H Dholakia IN response to our comment (EPW, December 31, 1994) on the paper by Balkrishnan and Pushpangadan (henceforth BP 1994), the authors have sought a few clarifications on the numbers we have estimated using their data (EPW, March 4, 1995). In their reply [BP 1995] they have also repeated some results already reported in their original paper [BP 1994] and claimed it to be substantial further work which strengthens their finding of no turn-around during the 1980s in the total factor productivity (TFP) growth in the Indian registered manufacturing sector. Moreover, they have ignored and tried to minimise the genuine limitations of the method of double deflation by referring to the ideal conditions which are hardly ever obtained or are practically non-feasible even in the most advanced countries. Here, we would like to provide the necessary clarifications on the method and data used by us to estimate the TFPG in the Indian Registered Manufacturing Sector through the double deflation method; and aIso examine BP'sclaim (1995) of further support to their findings of no turn-around during the 1980s.

Total Factor Productivity Growth in Indian Manufacturing

in Indian Manufacturing Bakul H Dholakia Ravindra H Dholakia IN a recent study. Total Factor Productivity Growth in the Manufacturing Industry in India', Balakrishnan and Pushpangadan (1994, henceforth B-P 1994) have attempted a very interesting exercise. They argue that the estimate of Total Factor Productivity Growth (TFPG) is highly sensitive to the way the real value added is measured. With the help of the example of the growth experience of the manufacturing industry in India, B-P (1994) have tried to show that measurement of real value added by the double deflation method, instead of single deflation method which is more widely used by the researchers, not only alters quantitatively the estimate of TFPG, but also affects qualitative conclusions about the behaviour of TFPG over time. Thus they argue that if double deflation method is used, during the decade of the 80s TFPG does not show any acceleration over the previous period. Rather TFPG during the 70s turns out to be higher than during the 80s. In the present note we would like to show that (1) the qualitative conclusion about the behaviour of TFPG in the Indian manufacturing industry over time, particularly during the 80s as compared to the 70s, does not change if sufficient care is taken about applying the double deflation method; and (2) the double deflation method per se is not necessarily superior to the single deflation method.

Issues in Strategy for Export Promotion-An Inter-Industry Analysis

An Inter-Industry Analysis Ravindra H Dholakia Bakul H Dholakia Ganesh Kumar This article points toward the need for integration between the new Exim policy and the Eighth Plan in India by considering direct and indirect effects of a unit increase in demand for exports as well as forward and backward linkage coefficients in each of the 47 commodity producing sectors using the CSO's latest input-output tables- Its main findings are: (a) if our objective is to achieve diversified high growth in the economy, the agri-based manufacturing sectors may be taken up for intensive export-promotion measures considering their linkages and DI effects; (b) the degree of export orientation of a sector varies inversely with the linkages of the sector with the rest of the economy; and (c) the import intensity of export-oriented sectors is higher than that of other sectors. There is, thus, an urgent need to integrate export promotion measures in our overall development strategy.

Income-Tax Concessions Implications for Equity and Growth of Tax-Base

Income-Tax Concessions: Implications for Equity and Growth of Tax-Base V N KOTHARI (EPW, February 21) argues that the income tax base in India is being eroded in the name of tax concessions as incentives for savings. On the basis of a broad analysis of the income tax/GDP ratio and some limited hypothetical arguments, he reaches a very serious conclusion that "by extending exemptions to the principal amount invested in particular forms such as the NSC, we have resorted to a costly and inequitous method of borrowing. A full or partial exemption of interest income would have been enough". Considering the profound implications of his conclusions, a detailed scrutiny of his arguments is imperative.

State Income Inequalities and Inter-State Variations in Growth of Real Capital Stock

Variations in Growth of Real Capital Stock Bakul H Dholakia Ravindra H Dholakia This paper attempts to analyse the behaviour of regional income inequalities and capital inequalities in India. It also seeks to examine the relationship between the trend in regional income inequality and regional allocation of investment among different states.

Relative Performance of Public and Private Manufacturing Enterprises in India- Total Factor Productivity Approach

Manufacturing Enterprises in India Total Factor Productivity Approach Bakul H Dholakia The performance of public enterprises in the manufacturing sector, it emerges from this study, has been quite remarkable, especially compared to that of comparable private enterprises, if we use the criterion of growth of total factor productivity rather than net profitability. In fact, public enterprises in the manufacturing sector, ichich have been absorbing scarce national resources, have been using these resources with rapidly increasing efficiency.
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