Title: Growth performance of food and beverage industry in India: a fresh look using structural break approach
Authors: Soma Pal; Chandrima Chakraborty
Addresses: Department of Economics, Vidyasagar University, Midnapore, West Bengal, Pin – 721102, India ' Department of Economics, Vidyasagar University, Midnapore, West Bengal, Pin – 721102, India
Abstract: The present study is an attempt to look into the growth performance of the food and beverage industry in India for an extensive period of almost four decades from 1980-1981 to 2017-2018 employing the endogenous structural break approach of Sen (2003). Along with it, the growth enhancing factors are also tried to be identified. The result suggests that the rate of growth is not uniform over the sample period. Rather there exists a structural break in the year 2007-2008 which may be the outcome of Vision 2015 of the Ministry of Food Processing Industry, 2005. After the break, growth has considerably increased. While detecting the factors enhancing output growth, a nonlinear relationship is found. Output growth may be stimulated by increasing firm size, higher degree of mechanisation, achieving the right composition of work-force and upsurge in relative wage rate. Furthermore, export intensity is found to dominate over import intensity in encouraging output growth.
Keywords: food and beverage industry; structural break; nonlinearity; net export intensity; India.
DOI: 10.1504/IJBCG.2021.122270
International Journal of Business Competition and Growth, 2021 Vol.7 No.4, pp.322 - 333
Published online: 14 Apr 2022 *
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