Productivity in the Informal Manufacturing Sector: Regional Patterns and Policy Issues

Mukherjee, Dipa (2004): Productivity in the Informal Manufacturing Sector: Regional Patterns and Policy Issues. Published in: Industrialization, Economic Reforms and Regional Development: Essays in honour of Professor Ashok Mathur, (eds) S. K. Thorat and others, Shipra Publications, New Delhi (2005)

Abstract

The study uses a disaggregated approach to look into Labour Productivity in the informal manufacturing sector in India over the last two decades, especially Trends in productivity levels and regional disparities, its regional pattern, and Factors affecting the productivity levels. Wide variation in productivity levels is observed. The Western and North-western states are found to be doing better. Regional disparities are higher for intermediate goods compared to others. However, converging tendencies are also perceived. General economic condition of the state and Availability of loan are identified as factors affecting productivity levels. Policies for improving productivity levels in this sector, especially in lagging regions, should include general economic upliftment, development of proper infrastructure, technological upgradation and easy and cheap credit availability.

• Item Type: MPRA Paper
• Institution: Dept of Economics, Narasinha Dutt College
• Language: English
• Keywords: Informal Sector; Regional Disparity; Productivity
• Subjects: R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes; D - Microeconomics > D2 - Production and Organizations > D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity; L - Industrial Organization > L6 - Industry Studies: Manufacturing > L60 - General