*Senior Project Fellow, Centre of Excellence Scheme, Department of Economics, Lucknow University, Lucknow, India
**Assistant Professor, Department of Economics, Dyal Singh College, University of Delhi, New Delhi, India
***Assistant Professor, Giri Institute of Development Studies, Lucknow, India
Online published on 2 May, 2015.
This paper will try to develop an analytical framework and employs it to empirically test if liberalization reforms in the Indian manufacturing sector has raised total factor productivity (TFP) growth. In this paper, we would also examine the technical efficiency and technical change in the manufacturing sector. Finally, the paper would conclude with some general observations and suggestions. Firm level performance in the manufacturing sector will be measured in the form of productivity growth in the present study. In the last two decades, the productivity growth measurement literature has been extended from the standard calculations of TFP employing production function framework towards more refined decomposition methods. To overcome the shortcomings of the growth accounting approach and to identify the components of productivity change, techniques have been developed that are based on the decomposition of TFP index. Malmquist index will be used for measuring the Total Factor Productivity. Finally, the paper would conclude with some general observations and suggestions.
Total factor productivity (TFP), Technical Efficiency, Technical change, liberalization reforms, Malamquist index approach, Manufacturing sector
