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Home»Articles»Components of Productivity Growth of the Manufacturing Industries of Petroleum and Coal Products in India: An Interstate Analysis

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Asian Journal of Managerial Science (AJMS)

Editor Dr. Tan Fee Yean
Print ISSN : 2249 - 6300
Frequency : Quarterly

Components of Productivity Growth of the Manufacturing Industries of Petroleum and Coal Products in India: An Interstate Analysis

Author : Prasanta Kumar Roy
Volume 9 No.2 July-December 2020 pp 40-50

Abstract

The study applies stochastic frontier approach to estimate and decompose the sources of total factor productivity growth (TFPG) of the 2-digit manufacturing industries of petroleum and coal products in fifteen major industrialized states in India as well as in All-India during the period from 1981-82 to 2010-11, during the entire period, during the pre-reform period (1981-82 to 1990-91) and post-reform period (1991-92 to 2010-11), and also during two different decades of the post-reform period, i.e., during 1991-92 to 2000-01 and 2001-02 to 2010-11. The components of TFPG are:  technological progress (TP), technical efficiency change (TEC), economic scale change (SC) and allocation efficiency change (AEC). According to the estimated results, technological progress (TP) is the major contributing factor to TFPG of the organized manufacturing industries of petroleum and coal products in India and in its fifteen major industrializes states during 1981-82 to 2010-11. Further, TFPG of the 2-digit manufacturing industries of petroleum and coal products in India and in its fifteen major industrialized states declined during the post-reform period and the decline in TFPG of these 2-digit industries during that period is mainly accounted for by the decline in TP of the same during that period. However, allocation efficiency change (AEC) and economic scale change (SC) of them remain very negligible or even negative too in many states under study. Further, TEC of them remain unchanged or it is time invariant in nature as statistical tests suggest.  So that increase in the combined effect of AEC and SC of them could not offset the decrease in their TP during that period. As a result TFPG of the 2-digit manufacturing industries of petroleum and coal products declined in India and its fifteen major industrialized states during the post-reform period.

Keywords

2-Digit Manufacturing Industries of Petroleum and Coal Products, Stochastic Frontier Production Function, Total Factor Productivity Growth, Technological Progress, Technical Efficiency Change, Scale Effect and Allocation Efficiency Effect

Full Text:

References

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Asian Journal of Managerial Science (AJMS) is a quarterly international peer-reviewed journal of Managerial Science. One of the objectives of this journal is to disseminate knowledge on various research issues connected with the topics include, but are not limited to:

Accounting, Auditing, Banking, Business strategy, Corporate governance, Entrepreneurship, Financial structure, Capital markets, Health economics, Human resources management, Information systems,Innovation management, Insurance, Marketing, Organization, Production and logistics, Risk management, and Taxation.

The study applies stochastic frontier approach to estimate and decompose the sources of total factor productivity growth (TFPG) of the 2-digit manufacturing industries of petroleum and coal products in fifteen major industrialized states in India as well as in All-India during the period from 1981-82 to 2010-11, during the entire period, during the pre-reform period (1981-82 to 1990-91) and post-reform period (1991-92 to 2010-11), and also during two different decades of the post-reform period, i.e., during 1991-92 to 2000-01 and 2001-02 to 2010-11. The components of TFPG are:  technological progress (TP), technical efficiency change (TEC), economic scale change (SC) and allocation efficiency change (AEC). According to the estimated results, technological progress (TP) is the major contributing factor to TFPG of the organized manufacturing industries of petroleum and coal products in India and in its fifteen major industrializes states during 1981-82 to 2010-11. Further, TFPG of the 2-digit manufacturing industries of petroleum and coal products in India and in its fifteen major industrialized states declined during the post-reform period and the decline in TFPG of these 2-digit industries during that period is mainly accounted for by the decline in TP of the same during that period. However, allocation efficiency change (AEC) and economic scale change (SC) of them remain very negligible or even negative too in many states under study. Further, TEC of them remain unchanged or it is time invariant in nature as statistical tests suggest.  So that increase in the combined effect of AEC and SC of them could not offset the decrease in their TP during that period. As a result TFPG of the 2-digit manufacturing industries of petroleum and coal products declined in India and its fifteen major industrialized states during the post-reform period.

Editor-in-Chief
Dr. Tan Fee Yean
Department of HRM, Universiti Utara Malaysia, Kedah, Malaysia
[email protected]
Editorial Advisory Board
Dr. Aidil Rizal Bin Shahrin
Department of Finance and Banking, University of Malaya, Malaysia
[email protected]
Dr. Amalendu Bhunia
Department of Commerce, University of Kalyani, West Bengal, India
[email protected]
Dr. Ahmad Zahiruddin Bin Yahya
Department of Accountancy, University of Malaya, Malaysia
[email protected]
Dr. Anil Govindrao Suryavanshi
Department of Commerce & Management, The New college, (Shivaji University), Maharashtra, India
[email protected]
Dr. Ong Lin Dar
Department Of Business Strategy And Policy, University of Malaya, Malaysia
[email protected]
Dr.V.Balachandran
Department of Corporate Secretaryship, Alagappa University,Tamil Nadu, India
[email protected]
Dr. Yeong Wai Chung
Department Of Operation and Management Information, University of Malaya, Malaysia
[email protected]
Prof.V.V.Devi Prasad Kotni
Department of Management Studies,GVP College for Degree & PG Courses, Andhra Pradesh, India
[email protected]
Dr. Quah Chee Heong
Department of Business Strategy and Policy, University of Malaya, Malaysia
[email protected].edu.my
Dr.Subrata Roy
Department of Commerce, Rabindra Mahavidyalaya, West Bengal, India
[email protected]
Dr. Norbani Binti Che Ha
Department of Marketing, University of Malaya, Malaysia
[email protected]
Dr. Tey Lian Seng
Department Of Business Strategy and Policy, University of Malaya,  Malaysia
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Dr. Mohammad Nazri Bin Mohd Nor
Department of Business Strategy and Policy, University of Malaya, Malaysia
[email protected]
Dr. Binish Qadri
Research Scholar, Department of Economics, Central University of Kashmir, India
[email protected]
Dr. Khaw Lee Hwei
Department of Finance and Banking, University of Malaya, Malaysia
[email protected]
Dr. V. P. Sriram
Department of Management, Balaji Institute of International Business, Maharashtra, India
[email protected]
Dr. Yusniza Binti Kamarulzaman
Department of Marketing, University of Malaya,  Malaysia
[email protected]
Dr. Kanagi Kanapathy
Department of Operations and Management Information Systems, University of Malaya, Malaysia
[email protected]
Dr. Abd El Salam Mahmoud Abou Kahf
Department of Commerce, Alexandria University, Egypt
[email protected]
Dr. Wong Sek Khin
Department of Business Strategy and Policy, University of Malaya, Malaysia
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Dr. Lee Su Teng
Department of Business Strategy and Policy, University of Malaya, Malaysia
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Department of Operation and Management Information System, University of Malaya, Malaysia
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College of Business, Management, Florida Atlantic University
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    Editorial Dr. Tan Fee Yean

    Editor-in-Chief
    Dr. Tan Fee Yean
    Department of HRM, Universiti Utara Malaysia, Kedah, Malaysia
    [email protected]
    Editorial Advisory Board
    Dr. Aidil Rizal Bin Shahrin
    Department of Finance and Banking, University of Malaya, Malaysia
    [email protected]
    Dr. Amalendu Bhunia
    Department of Commerce, University of Kalyani, West Bengal, India
    [email protected]
    Dr. Ahmad Zahiruddin Bin Yahya
    Department of Accountancy, University of Malaya, Malaysia
    azyah[email protected]
    Dr. Anil Govindrao Suryavanshi
    Department of Commerce & Management, The New college, (Shivaji University), Maharashtra, India
    [email protected]
    Dr. Ong Lin Dar
    Department Of Business Strategy And Policy, University of Malaya, Malaysia
    [email protected]
    Dr.V.Balachandran
    Department of Corporate Secretaryship, Alagappa University,Tamil Nadu, India
    [email protected]
    Dr. Yeong Wai Chung
    Department Of Operation and Management Information, University of Malaya, Malaysia
    [email protected]
    Prof.V.V.Devi Prasad Kotni
    Department of Management Studies,GVP College for Degree & PG Courses, Andhra Pradesh, India
    [email protected]
    Dr. Quah Chee Heong
    Department of Business Strategy and Policy, University of Malaya, Malaysia
    [email protected].edu.my
    Dr.Subrata Roy
    Department of Commerce, Rabindra Mahavidyalaya, West Bengal, India
    [email protected]
    Dr. Norbani Binti Che Ha
    Department of Marketing, University of Malaya, Malaysia
    [email protected]
    Dr. Tey Lian Seng
    Department Of Business Strategy and Policy, University of Malaya,  Malaysia
    [email protected]
    Dr. Mohammad Nazri Bin Mohd Nor
    Department of Business Strategy and Policy, University of Malaya, Malaysia
    [email protected]
    Dr. Binish Qadri
    Research Scholar, Department of Economics, Central University of Kashmir, India
    [email protected]
    Dr. Khaw Lee Hwei
    Department of Finance and Banking, University of Malaya, Malaysia
    [email protected]
    Dr. V. P. Sriram
    Department of Management, Balaji Institute of International Business, Maharashtra, India
    [email protected]
    Dr. Yusniza Binti Kamarulzaman
    Department of Marketing, University of Malaya,  Malaysia
    [email protected]
    Dr. Kanagi Kanapathy
    Department of Operations and Management Information Systems, University of Malaya, Malaysia
    [email protected]
    Dr. Abd El Salam Mahmoud Abou Kahf
    Department of Commerce, Alexandria University, Egypt
    [email protected]
    Dr. Wong Sek Khin
    Department of Business Strategy and Policy, University of Malaya, Malaysia
    [email protected]
    Dr. Lee Su Teng
    Department of Business Strategy and Policy, University of Malaya, Malaysia
    [email protected]
    Dr. Phoong Seuk Wai
    Department of Operation and Management Information System, University of Malaya, Malaysia
    [email protected]
    Dr. Dennis Palkon
    College of Business, Management, Florida Atlantic University
    [email protected]

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