Contribution of co-operative manufacturing society in India

An attempt was made in this paper to examine the parameters of growth based on certain indices with their growth and variation, relationship between wage and labour productivity, relationship between labour productivity growth and output growth, impact of technology on wage, employment, wage and output elasticity covering the period from 2001–02 to 2013–14 for the co-operative manufacturing society in India. Tools such as Compound Annual Growth Rate, Co-efficient of variation, Annual Variation, Linear regression models, other tools such as base year indices, percentages, diagrams and ratios were used to carry out the analysis. It was observed that throughout the year there were mixed changes recorded with wider variations in the growth of number of factories, geographical and market concentration. Capital was the major factor in maintaining gross output level of the manufacturing society. Earnings per employee was less than the per worker wage rate throughout the period. Capital intensity was more than the labour intensity. The efficiency of capital input was stable compared to labour efficiency. The importance of labour in the industry as an input has been continuously decreasing. The results supported the hypothesis that labour productivity has strong influence on the determination of wages in the manufacturing sector. The result regarding Verdoon‘s law showed that output was closely related to labour productivity. Thus, this finding supported Verdoon‘s law. The output elasticity with respect to employment showed that it was positive but was statistically insignificant. Employment elasticity with respect to output was positive but statistically significant co-efficient was not found. Wage elasticity with respect to labor productivity and output was positive.