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

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TFPG in Manufacturing: The 80s Revisited

Establishing accelerated productivity growth in the 1980s is contingent on the use of single deflation, a procedure flawed in principle. There is no credible option to double deflation when working with value added as the output measure in physical terms.

Land Reforms and the Question of Food in Kerala

in Kerala Pulapre Balakrishnan This paper explores the idea that the decline of foodgrain production in Kerala originated in the decline of agriculture following migration to the Gulf. It is this event, it is argued, that has stood in the way of land reforms working themselves out completely, a process that may be expected to take time. The author also points out the implications of the consequent import dependence of food supply in the state.

What Do We Know about Productivity Growth in Indian Industry

If the growth in total factor productivity in the manufacturing sector during the 1980s may be used as the testing ground for our understanding of the phenomenon we must recognise that our knowledge is limited. Two equally mainstream approaches yield divergent results. Thus, there remains an unresolved issue.

TFPG in Manufacturing Industry

TFPG in Manufacturing Industry P Balakrishnan K Pushpangadan IN the light of at least one [Sastry 1995] response to our original article that appeared since our last [Balakrishnan and Pushpangadan 1995] note we would first like to offer some observations on the question of the plausibility of our estimates of TFP growth in Indian manufacturing industry in recent years. Next, we reply in detail to the most recent comment of R and B Dholakia [Dholakia and Dholakia 1995] In general, our point that double deflation is superior to single deflation as a procedure to arrive at real value added appears to have been well taken. However, there appears to be an unease among some at finding the consequent estimates indicating a slower growth of value added in the 1980s since this is widely, and correctly, perceived to be a period of expansionary macroeconomic policy. However, we see no problem, whatsoever, in reconciling our results with the recent trajectory of the Indian economy. The 1980s might well have seen a faster growth of production along with a slower growth of value added. In fact, in a period of a secular decline in the price of raw materials, as occurred in the 1980s,1 this is exactly what would be the prediction when using a neo-classical production function.

Total Factor Productivity Growth in Manufacturing Industry

Total Factor Productivity Growth in Manufacturing Industry P Balakrishnan K Pushpangadan IN our article [Balakrishnan and Pushpangadan 1994] we had argued that appropriate measurement of value added at constant prices is a prerequisite for the estimation of productivity. We had then proceeded to provide a demonstration of this principle by providing estimates of total factor productivity growth for Aggregate Manufacturing in the Indian economy. We observed that the measurement of value added has implications for the estimated growth of TFP. We consider it to be a reflection of the fact that our point has been taken seriously that our original paper has been replied to.1 In this brief note we reply toourcritics. Here we report the results of substantial further work on TFP growth in manufacturing industry. These results strengthen the conclusion of our original paper.

Total Factor-Productivity Growth in Manufacturing Industry A Fresh Look

Manufacturing Industry: A Fresh Look P Balakrishnan K Pushpangadan Productivity estimates are sensitive to the measure of real value added that is adopted One source of bias in estimation is that due to the assumption often made of constancy of the relative price of material inputs. This paper provides estimates of total factor productivity for Aggregate Manufacturing having adjusted for changes in this relative price. These results indicate that, contrary to what is believed, productivity growth in the 1980s may, actually, have been slower than in-the earlier decade.
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