Productivity Dynamics and Rural Industrialization in India

IF 0.4 Q4 ECONOMICS Journal of Interdisciplinary Economics Pub Date : 2020-01-01 DOI:10.1177/0260107919875585
Takahiro Sato, A. Aggarwal
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Abstract

Since the late 1990s, industrialization in India has been driven by the rural organized manufacturing sector. This paper examines the effects of firms’ dynamics on rural industrialization in India, using plant-level panel data, to investigate the characteristics of rural industrialization in India in recent years. In particular, the paper focuses on productivity differences among continuing, entering, and exiting firms. The results show that both labour and total factor productivity of the organized manufacturing sector in rural areas increased during 2000–2006 and the aggregate productivity growth is supported by the productivity growth of the continuing firms, the entry of productive firms, and the exit of less-productive firms. The paper can conclude that firms’ productivity dynamics contributed to the current rural industrialization in India. JEL: O14, O47, O53
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印度的生产力动态与农村工业化
自20世纪90年代末以来,印度的工业化一直由农村有组织的制造业推动。本文利用工厂层面的面板数据,考察了企业动态对印度农村工业化的影响,考察了近年来印度农村工业化特征。特别是,本文关注的是持续、进入和退出企业之间的生产率差异。结果表明,2000-2006年期间,农村地区有组织制造业的劳动生产率和全要素生产率都有所提高,持续企业的生产率增长、生产性企业的进入和低生产率企业的退出支持了总生产率的增长。本文可以得出结论,企业的生产力动态对当前印度农村工业化做出了贡献。JEL:O14,O47,O53
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期刊介绍: The explosion of information and research that has taken place in recent years has had a profound effect upon a variety of existing academic disciplines giving rise to the dissolution of barriers between some, mergers between others, and the creation of entirely new fields of enquiry.
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