IDEAS home Printed from https://ideas.repec.org/a/spr/ijlaec/v66y2023i1d10.1007_s41027-023-00430-z.html
   My bibliography  Save this article

Economic Liberalisation, Structural Change and Productivity Growth in Indian Organised Manufacturing Sector, 1991–2016

Author

Listed:
  • R. Rijesh

    (Institute for Studies in Industrial Development (ISID))

Abstract

The present study examines the nature of structural change and productivity dynamics in the organised manufacturing of India since economic liberalisation in the early 1990s. We find significant changes in Indian manufacturing as the specialisation pattern moved towards technology-intensive segments with considerable improvement in output, productivity, wages, and capital intensity. However, a corresponding growth in employment is not observed across many industries. The decomposition of labour productivity at the sectoral level reveals the overwhelming presence of within-sectoral technological change component of growth across different industries. However, the detailed plant-level data show evidence of positive structural change, in terms of static and dynamic shifts, among the medium technology-intensive sectors during the 2000s. The findings point out the need to have comprehensive and strategic policy interventions to address the structural rigidities and institutional bottlenecks in the manufacturing sector.

Suggested Citation

  • R. Rijesh, 2023. "Economic Liberalisation, Structural Change and Productivity Growth in Indian Organised Manufacturing Sector, 1991–2016," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(1), pages 131-154, March.
    • Handle: RePEc:spr:ijlaec:v:66:y:2023:i:1:d:10.1007_s41027-023-00430-z
    DOI: 10.1007/s41027-023-00430-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s41027-023-00430-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s41027-023-00430-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fagerberg, Jan, 2000. "Technological progress, structural change and productivity growth: a comparative study," Structural Change and Economic Dynamics, Elsevier, vol. 11(4), pages 393-411, December.
    2. Neil Foster--McGregor & Bart Verspagen, 2016. "The Role of Structural Change in the Economic Development of Asian Economies," Asian Development Review, MIT Press, vol. 33(2), pages 74-93, September.
    3. Panagariya, Arvind, 2011. "India: The Emerging Giant," OUP Catalogue, Oxford University Press, number 9780199751563.
    4. Peneder, Michael, 2003. "Industrial structure and aggregate growth," Structural Change and Economic Dynamics, Elsevier, vol. 14(4), pages 427-448, December.
    5. Margaret S. McMillan & Dani Rodrik, 2011. "Globalization, Structural Change and Productivity Growth," NBER Working Papers 17143, National Bureau of Economic Research, Inc.
    6. Timmer, Marcel P. & Szirmai, Adam, 2000. "Productivity growth in Asian manufacturing: the structural bonus hypothesis examined," Structural Change and Economic Dynamics, Elsevier, vol. 11(4), pages 371-392, December.
    7. Vu, K.M., 2017. "Structural change and economic growth: Empirical evidence and policy insights from Asian economies," Structural Change and Economic Dynamics, Elsevier, vol. 41(C), pages 64-77.
    8. Andreas Dietrich, 2012. "Does growth cause structural change, or is it the other way around? A dynamic panel data analysis for seven OECD countries," Empirical Economics, Springer, vol. 43(3), pages 915-944, December.
    9. Cortuk, Orcan & Singh, Nirvikar, 2011. "Structural change and growth in India," Economics Letters, Elsevier, vol. 110(3), pages 178-181, March.
    10. R. Rijesh, 2019. "International Trade and Productivity Growth in Indian Industry: Evidence from the Organized Manufacturing Sector," Journal of South Asian Development, , vol. 14(1), pages 1-39, April.
    11. Erumban, Abdul Azeez & Das, Deb Kusum & Aggarwal, Suresh & Das, Pilu Chandra, 2019. "Structural change and economic growth in India," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 186-202.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. R. Rijesh, 2024. "Trade, labour reallocation and productivity growth in the indian manufacturing sector," Indian Economic Review, Springer, vol. 59(1), pages 327-353, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alina Szewc-Rogalska & Tomasz Jakiel, 2021. "Zmiany strukturalne a wydajność pracy w krajach Europy Środkowej," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 63-96.
    2. Tévécia Ronzon & Susanne Iost & George Philippidis, 2022. "Has the European Union entered a bioeconomy transition? Combining an output-based approach with a shift-share analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(6), pages 8195-8217, June.
    3. Vu, K.M., 2017. "Structural change and economic growth: Empirical evidence and policy insights from Asian economies," Structural Change and Economic Dynamics, Elsevier, vol. 41(C), pages 64-77.
    4. Aradhna Aggarwal & Nagesh Kumar, 2012. "Structural Change, Industrialization and Poverty Reduction: The Case of India," Development Papers 1206, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office.
    5. Andres Kuusk & Karsten Staehr & Uku Varblane, 2017. "Sectoral change and labour productivity growth during boom, bust and recovery in Central and Eastern Europe," Economic Change and Restructuring, Springer, vol. 50(1), pages 21-43, February.
    6. Cardinale, Roberto, 2019. "Theory and practice of State intervention: Italy, South Korea and stages of economic development," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 206-216.
    7. Adrián Rial & Rafael Fernández, 2023. "Does tertiarisation slow down productivity growth? A Kaldorian–Baumolian analysis across 10 developed economies," Metroeconomica, Wiley Blackwell, vol. 74(1), pages 188-222, February.
    8. Andres Kuusk & Karsten Staehr & Uku Varblane, 2015. "Sectoral change and labour productivity growth during boom, bust and recovery," Bank of Estonia Working Papers wp2015-2, Bank of Estonia, revised 30 Dec 2015.
    9. Maciej Grodzicki, 2013. "Productivity Convergence in Manufacturing in the European Union: The Role of Economic Structure," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 5(2).
    10. Zhou, Xiaoxiao & Pan, Zixuan & Shahbaz, Muhammad & Song, Malin, 2020. "Directed technological progress driven by diversified industrial structural change," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 112-129.
    11. Valeriy V. Mironov & Liudmila D. Konovalova, 2019. "Structural changes and economic growth in the world economy and Russia," Russian Journal of Economics, ARPHA Platform, vol. 5(1), pages 1-26, April.
    12. Ester G. Silva & Aurora A. C. Teixeira, 2011. "Does structure influence growth? A panel data econometric assessment of "relatively less developed" countries, 1979--2003," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(2), pages 457-510, April.
    13. Wankeun Oh & Seung Won Kang, 2022. "Attribution of Changes in Vietnam’s Labor Productivity," Sustainability, MDPI, vol. 14(11), pages 1-19, May.
    14. Peter Havlik, 2015. "Patterns of Structural Change in the New EU Member States," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 3, pages 133-157, September.
    15. Erumban, Abdul Azeez & Das, Deb Kusum & Aggarwal, Suresh & Das, Pilu Chandra, 2019. "Structural change and economic growth in India," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 186-202.
    16. Renato Perim Colistete, 2011. "Revisiting Import-Substitutingindustrialisation In Post-War Brazil," Anais do XXXVIII Encontro Nacional de Economia [Proceedings of the 38th Brazilian Economics Meeting] 203, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    17. Wu, Haitao & Hao, Yu & Weng, Jia-Hsi, 2019. "How does energy consumption affect China's urbanization? New evidence from dynamic threshold panel models," Energy Policy, Elsevier, vol. 127(C), pages 24-38.
    18. Yu Jiang & Na Wang, 2022. "Impact of Biased Technological Change on High-Quality Economic Development of China’s Forestry: Based on Mediating Effect of Industrial Structure Upgrading," Sustainability, MDPI, vol. 14(16), pages 1-18, August.
    19. Silveira, Fabricio, 2022. "Firm size distribution and growth: An empirical investigation," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 422-434.
    20. Mensah, Emmanuel & Owusu, Solomon & Foster-McGregor, Neil & Szirmai, Adam, 2018. "Structural change, productivity growth and labour market turbulence in Africa," MERIT Working Papers 2018-025, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    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:spr:ijlaec:v:66:y:2023:i:1:d:10.1007_s41027-023-00430-z. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.