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Lifting the Veil: The Face of TFP in an Indian Rail Mill

Author

Listed:
  • Sanghamitra Das
  • Kala M. Krishna
  • Sergey Lychagin
  • Rohini Somanathan

Abstract

We use a proprietary data set on the floor-level operations at the Bhilai Rail and Structural Mill (RSM) in India to understand how output rose sharply in response to competitive pressures. Output increases came predominantly from reductions in production delays of various kinds. We model interruptions to the production process as a function of worker characteristics and training and find that a large part of the avoidable delay reductions are attributable to a particular form of training, suggesting that such investments can have very high returns. Our work suggests very high returns to knowledge-enhancing investments in emerging economies.

Suggested Citation

  • Sanghamitra Das & Kala M. Krishna & Sergey Lychagin & Rohini Somanathan, 2011. "Lifting the Veil: The Face of TFP in an Indian Rail Mill," CESifo Working Paper Series 3515, CESifo.
    • Handle: RePEc:ces:ceswps:_3515
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    References listed on IDEAS

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    More about this item

    Keywords

    Total Factor Productivity (TFP); plant level data; competitiveness and trade;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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