An Analysis of Factor Productivity in Handloom Weaving Units in Chittoor District

This study emphasizes that in the present era of 'going global' competitiveness is the only mantra to 'grow globally'. The authors emphasize that industrialization is considered as a sine qua non for the economic development, the productivity performance acts as the key for raising per capita income or reducing the real per unit cost of goods and services. Further, the paper highlights that this process also acts as a vital catalyst for a larger transformation of the economy through linkages and creation of external economies. In view of the significance of productivity growth, this paper deals with an analysis of total factor productivity and the contribution of capital and labor inputs in handloom weaving units. The authors express that the micro level studies of this nature certainly throws light on the sources of the growth of production in handloom weaving with specific attention to the size of the loom and its correlation to input productivity and variations in total factor productivity. This type of study provides guidelines to the planners in formulating the policy relating to balance regional development, dispersal of industries, allocation of resources, etc.