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Productivity Dynamics in the Indian Pharmaceutical Industry: Evidences from Plant-level Panel Data

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  • Atsuko Kamiike
  • Takahiro Sato
  • Aradhna Aggarwal

Abstract

This paper investigates the effects of plants' dynamics on productivity growth in the Indian pharmaceutical industry across five regions: north, north-west, west, south and the rest of India, during the period from 2000-01 to 2005-06, using the unit-level panel database drawn from the Annual Survey of Industries. The selected regions differ in the degree and age of agglomeration of the pharmaceutical industry. The empirical analysis is based on the decomposition methodology of aggregate productivity growth. This methodology decomposes productivity growth between two points in time into the contribution from four broad factors: improvement in incumbents? productivity (within effect), reallocation of resources from less productive to more productive producers (reallocation effect), entry of more productive firms (entry effects), and exit of less productive firms (exit effect). URL:[http://fgks.in/IndexServer/tifac/article/142.pdf].

Suggested Citation

  • Atsuko Kamiike & Takahiro Sato & Aradhna Aggarwal, 2011. "Productivity Dynamics in the Indian Pharmaceutical Industry: Evidences from Plant-level Panel Data," Working Papers id:4445, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:4445
    Note: Institutional Papers
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    References listed on IDEAS

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    1. Lucia Foster & John C. Haltiwanger & C. J. Krizan, 2001. "Aggregate Productivity Growth: Lessons from Microeconomic Evidence," NBER Chapters, in: New Developments in Productivity Analysis, pages 303-372, National Bureau of Economic Research, Inc.
    2. Seshaiah, Venkata & Krishna, Radha, 2003. "Liberalization and Color TV Industry in India," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 3(2).
    3. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(2), pages 317-341.
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    Cited by:

    1. Chiranjib Neogi & Atsuko Kamiike & Takahiro Sato, 2012. "Identification of Factors Behind Performance of Pharmaceutical Industries in India," Discussion Paper Series DP2012-23, Research Institute for Economics & Business Administration, Kobe University.
    2. Takahiro Sato & Aradhna Aggarwal, 2020. "Productivity Dynamics and Rural Industrialization in India," Journal of Interdisciplinary Economics, , vol. 32(1), pages 23-46, January.

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