Total factor productivity growth in Indian manufacturing : a fresh look

Abstract

Abetsast: Productivity estimates are sensitive t o the measure of ma1 value-added adopted.One source of b5as in estimation is that due t o tho assumptioa of constancy of the relative price of material inputs.T h i s paper provides estimates of total factor prodrndtivity in aggregate manufacturing industry having adjusted for changes in this relative price.These results indicate that, COntra~gr t o what is believed, productivity grawth in the rgsbs may, aCtuaXPy, have been slower than in the earlier decade.