Productivity growth of Karnataka manufacturing sector

The present study is an investigation of partial factor productivity and total factor productivity growth of Karnataka manufacturing at the disaggregate level for ten major industrial groups. The period for the study is 1980–81 to 2010–11, analysis has also been done for three sub periods, period 1: pre-reform period 1980–81 to 1989–90, period 2: I-Phase of reform period 1990–91 to 1999–00 and period 3: II-Phase of reform period 2000–01 to 2010–11. The study used Translog Divisia Index production function with two input framework to estimate total factor productivity (TFP). Partial factor productivity and TFP growth rates have been calculated by using semi-log trend equation. This analysis indicates that manufacturing industries of Karnataka did not achieve productivity growth to any significant extent in the I-Phase of reform period. However, the II-Phase of reform period depicts acceleration in the productivity growth.