Title: Productive efficiency of the urban informal manufacturing sector in Assam

Authors: Ashima Majumdar; Saundarjya Borbora

Addresses: Department of Humanities and Social Sciences, IIT Guwahati, Guwahati-781039, Assam, India ' Department of Humanities and Social Sciences, IIT Guwahati, Guwahati-781039, Assam, India

Abstract: The paper analyses the productivity growth pattern in the urban informal manufacturing sector of Assam in India. The productivity of the urban informal manufacturing sector of the state is calculated and compared to the national average by using both partial and total factor productivity measures. Total factor productivity growth is taken as the difference between the growth rate in value added and a weighted sum of capital, and labour growth rates, the weights being the share of labour and capital in value added respectively. The index of efficiency of labour is computed for the state and compared to the national levels and is calculated as the difference between the actual growth rate and the desired growth rate of labour productivity. The study finds that positive total factor productivity growth of this sector both at the state as well as at the national level which is an encouraging signal.

Keywords: urban manufacturing; informal sector; productivity efficiency; India; total factor productivity.

DOI: 10.1504/IJEPEE.2014.063188

International Journal of Economic Policy in Emerging Economies, 2014 Vol.7 No.2, pp.125 - 140

Available online: 05 Jul 2014 *

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