IDEAS home Printed from https://ideas.repec.org/a/jda/journl/vol.46year2012issue1pp315-329.html
   My bibliography  Save this article

The Impacts of Economic Reforms on Efficiency Improvement and Technological Progress in Indian Manufacturing

Author

Listed:
  • Muthusamy Saravanakumar
  • Taegi Kim

    (Kaamadenu Arts and Science College, India
    Chonnam National University, South Korea)

Abstract

This paper applied the Malmquist productivity index in order to estimate total factor productivity growth and its components (efficiency change and technological progress) in Indian manufacturing during the pre- and post-reform periods. The results illustrate that the economic reforms have not exerted positive effects on productivity growth in Indian manufacturing. However, the impacts of economic reforms differ between sectors and between components of total factor productivity. First, after reform, the productivity of heavy industries increased, whereas the productivity of light industries decreased. Second, reform improves both the efficiency and the technological progress in the heavy industries, but failed to improve efficiency in light industries. The results of this study suggest that specific policies should be implemented in order to improve efficiency as well as technical progress, thus ultimately facilitating long-run productivity growth.

Suggested Citation

  • Muthusamy Saravanakumar & Taegi Kim, 2012. "The Impacts of Economic Reforms on Efficiency Improvement and Technological Progress in Indian Manufacturing," Journal of Developing Areas, Tennessee State University, College of Business, vol. 46(1), pages 315-329, January-J.
    • Handle: RePEc:jda:journl:vol.46:year:2012:issue1:pp:315-329
    as

    Download full text from publisher

    File URL: http://muse.jhu.edu/journals/journal_of_developing_areas/v046/46.1.saravanakumar.html
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Indian Manufacturing; Economic Reforms; Productivity; Malmquist Index;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jda:journl:vol.46:year:2012:issue1:pp:315-329. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Abu N.M. Wahid (email available below). General contact details of provider: https://edirc.repec.org/data/cbtnsus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.