Title: Productivity growth in Indian telecommunications equipment industry

Authors: Dipayan Datta Chaudhuri; Aashish Yadav

Addresses: Indian Institute of Management Indore, Prabandh Shikhar, Rau-Pithampur Road, Indore – 453556, Madhya Pradesh, India ' Indian Institute of Management Indore, Prabandh Shikhar, Rau-Pithampur Road, Indore – 453556, Madhya Pradesh, India

Abstract: This study has analysed whether the high growth rate in telecommunications service sector has a favourable impact on productivity growth rates of the telecommunications equipment industry in India. In this study, the total and partial factor productivity growth rates are measured for the telecommunications equipment industry during 1999-2016. The translog index is used to estimate the total factor productivity (TFP) growth rate of this industry in a five input KLEMS - framework. The period of study is divided into two sub-periods, i.e., 1999-2007 (sub-period I) and 2008-2016 (sub-period II). The annual growth rate of total factor productivity is estimated to be 3.56% in sub-period I and 2.22% in sub-period II. It has been observed that the growth rate of gross value added (GVA) has decelerated between two sub-periods as the industry has become more import-centric due to implementation of the information technology agreement.

Keywords: India; telecommunications; trade liberalisation; information technology agreement; ITA; total factor productivity; TFP; partial factor productivity; growth accounting approach; GAA; translog index; productivity performance; KLEMS-framework.

DOI: 10.1504/IJPQM.2020.111685

International Journal of Productivity and Quality Management, 2020 Vol.31 No.4, pp.508 - 526

Received: 12 May 2018
Accepted: 07 Jun 2019
Published online: 09 Dec 2020 *

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