Productivity and Convergence in India: State Level Analysis

29 Pages Posted: 9 Jul 2010

See all articles by Surender Kumar

Surender Kumar

University of Delhi - Department of Business Economics

Shunsuke Managi

Kyushu University

Date Written: July 8, 2010

Abstract

Total factor productivity plays an important role in the growth of the economy. Using recently available state level data over 1993 and 2005, we find widespread regional variation in productivity changes. In the beginning of the liberalization era, improvement in technical efficiency contributes to the growth of the productivity. In the later periods, however, the productivity growth is governed by the growth in technical progress. We also study about convergence in state level and find a tendency of convergence in productivity growth though only states that are efficient remain on the production frontier.

Keywords: India, Total factor productivity, Nonparametric analysis, Convergence

JEL Classification: O4, O53, E19

Suggested Citation

Kumar, Surender and Managi, Shunsuke, Productivity and Convergence in India: State Level Analysis (July 8, 2010). Available at SSRN: https://ssrn.com/abstract=1636162 or http://dx.doi.org/10.2139/ssrn.1636162

Surender Kumar (Contact Author)

University of Delhi - Department of Business Economics ( email )

New Dehli
India

Shunsuke Managi

Kyushu University

6-19-1, Hakozaki, Higashiku
Fukuoka, 812-8581
Japan

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