Trade Liberalization and Total Factor Productivity of Indian Capital Goods Industries


Authors : Swarnjeet Kaur

Volume/Issue : Volume 4 - 2019, Issue 8 - August

Google Scholar : https://goo.gl/DF9R4u

Scribd : https://bit.ly/2ZMXUux

The paper includes the most debatable issue to examine the impact of economic liberalisation on Indian capital goods sector. It deals with the effect of growth and productivity on sub-sectors of capital goods industries- electronics industries, electrical machinery industries, non-electrical machinery industries and transport equipment industries. For this purpose, ASI database has been used for period 1980-81 to 2013-14 which is further classified into pre-reform (1980-81 to 1990-912) and post-reform (1991-92 to 2013-14) period. The study yielded limited evidence of increase in productivity growth and n evidence of increase in capital productivity. The decline of growth and shares of sub-sectors also suggests that trade liberalisation cannot interpret as important factor to affect the productivity in long-run.

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