Lifting the Veil: The Face of TFP in an Indian Rail Mill

29 Pages Posted: 18 Jul 2011

See all articles by Sanghamitra Das

Sanghamitra Das

Indian Statistical Institute

Kala Krishna

Pennsylvania State University - Department of Economics; National Bureau of Economic Research (NBER)

Sergey Lychagin

Central European University (CEU)

Rohini Somanathan

University of Delhi - Department of Economics

Date Written: July 18, 2011

Abstract

We use a proprietary data set on the floor-level operations at the Bhilai Rail and Structural Mill (RSM) in India to understand how output rose sharply in response to competitive pressures. Output increases came predominantly from reductions in production delays of various kinds. We model interruptions to the production process as a function of worker characteristics and training and find that a large part of the avoidable delay reductions are attributable to a particular form of training, suggesting that such investments can have very high returns. Our work suggests very high returns to knowledge-enhancing investments in emerging economies.

Keywords: total factor productivity (TFP), plant level data, competitiveness and trade

JEL Classification: D240, J240, L230, L610, M530

Suggested Citation

Das, Sanghamitra and Krishna, Kala and Lychagin, Sergey and Somanathan, Rohini, Lifting the Veil: The Face of TFP in an Indian Rail Mill (July 18, 2011). CESifo Working Paper Series No. 3515. Available at SSRN: https://ssrn.com/abstract=1888196

Sanghamitra Das

Indian Statistical Institute ( email )

7 S.J.S. Sansanwal Marg
Planning Unit
New Delhi - 110016
India

Kala Krishna (Contact Author)

Pennsylvania State University - Department of Economics ( email )

523 Kern Graduate Building
University Park, PA 16802-3306
United States
814-865-1106 (Phone)
814-863-4775 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Sergey Lychagin

Central European University (CEU) ( email )

Nador utca 9
Budapest, H-1051
Hungary

HOME PAGE: http://www.personal.ceu.hu/staff/Sergey_Lychagin/

Rohini Somanathan

University of Delhi - Department of Economics ( email )

Delhi-110007
India

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