Growth in Organized Manufacturing and its Productivity in West Bengal During 1981-82 to 2010-11: A Comparative Study of Some Selected States in Eastern India vis-à-vis All India

Abstract

This paper attempts to estimate the growth of output and productivity in the organized manufacturing industry in West Bengal and compare the results with those of three selected states in eastern India namely Assam, Bihar and Orissa vis-a-vis all India during 1981-82 to 2010-2011, during the pre- and post-reform periods (1981-82 to 1990-91 and 1991-92 to 2010-11)) and over the decades during this period. So far as the growth in organized manufacturing is concerned, annual growth rates, average annual growth rates as well as trend growth rates of output are estimated for that sector in West Bengal and in the three selected states in eastern India as well as in all India and compared the results obtained. The study further estimates the partial as well as the total factor productivity growth (TFPG) of the organized manufacturing industries in West Bengal and in three states mentioned above as well as in all India. To estimate the trend growth rates separate semi-logarithmic trend is fitted using ordinary least square method. In order to estimate the total factor productivity growth production function estimation approach is used in this study. The more generalized form of production function, namely, Translog Production function is used for the purpose.