A Stochastic Frontier Approach to the Estimation of Total Factor Productivity Growth of Manufacturing Sector: Pre- and Post-WTO Regime Study of West Bengal and All India

Abstract

Total factor productivity growth (TFPG) is not only the technological progress. It is a boarder concept. It may be the increase in the productivity of inputs, economies of scale, capacity utilization, technological progress, etc. In this study, we have tried to estimate TFPG and its components for the manufacturing industries of West Bengal and overall India, for the period 1980–1981 to 2016–2017, using stochastic frontier approach. The main data source of this study is the Annual Survey of Industries (ASI), which is published by the Central Statistical Organization, Government of India. The entire period has been sub-divided into two phases; pre-World Trade Organization (WTO) regime (1980–1981 to 1995–1996) and post-WTO regime (1995–1996 to 2016–2017). This study also tries to make a comparative analysis between the TFPG of manufacturing sector of West Bengal and all India level for the time period mentioned above. For West Bengal, TFPG has decreased for the post-WTO regime and it has increased in post-WTO regime for overall.

Citation

Hasan, M.R., Bera, P. and Pal, M.K. (2021), "A Stochastic Frontier Approach to the Estimation of Total Factor Productivity Growth of Manufacturing Sector: Pre- and Post-WTO Regime Study of West Bengal and All India", Das, R.C. (Ed.) Global Tariff War: Economic, Political and Social Implications, Emerald Publishing Limited, Leeds, pp. 173-185. https://doi.org/10.1108/978-1-80071-314-720211014