A Time Series Analysis of Productivity Growth and Environmental Emission in Indian Pharmaceutical Industry

Abstract

Pharmaceutical industry is one of the sunrise industries in the Indian manufacturing sector. It has flourished in the recent past. This chapter makes a comparative analysis of the productivity growth of Indian pharmaceutical industry using production function approach and adopting two distinct measures of labour input and also explains whether the growth and productivity is eco-friendly or not. Annual Survey of Industries (ASI) data is considered as data base and the time period 1980–1981 to 2016–2017 is considered which is sub-divided into four periods (1980–1981 to 1989–1990; 1990–1991 to 1999–2000; 2000–2001 to 2009–2010; and rest of the period). The pattern of result for both the measures are more or less in the same direction. A remarkable growth in total factor productivity (TFP) is observed after the initiation of new economic policy for both the method used. So far as the environmental issues are concerned, this industry seems to have been polluting the environment, as per unit use of energy is increasing over time.

Citation

Hasan, M.R., Kumar Pal, M. and Bera, P. (2023), "A Time Series Analysis of Productivity Growth and Environmental Emission in Indian Pharmaceutical Industry", Kumar Pal, M. (Ed.) The Impact of Environmental Emissions and Aggregate Economic Activity on Industry: Theoretical and Empirical Perspectives, Emerald Publishing Limited, Leeds, pp. 155-168. https://doi.org/10.1108/978-1-80382-577-920231012