Input Usage and Productivity in Indian Manufacturing Plants

This paper analyzes the scale and productivity consequences of varied input use in Indian manufacturing using detailed plant-level data. Counts of distinct material inputs are higher in urban settings than in rural locations, unconditionally and conditional on plant size, and they are also higher in the organized sector than in the unorganized sector. At the district level, higher input usage in the organized sector is generally observed in wealthier districts and those with greater literacy rates. If looking within states, the usage is more closely associated with electricity access, population density, and closer spatial proximity to one of India's largest cities. Plants in the organized sector utilizing a greater variety of inputs display higher productivity, with the effects mostly concentrated among smaller plants with fewer than 50 employees. For the unorganized sector, there is little correlation of input counts and local conditions, for better or for worse, and a more modest link to productivity outcomes.

Bibliographic Details

Main Authors:	Kerr, William R., Ghani, Ejaz, O'Connell, Stephen D.
Language:	English en_US
Published:	World Bank, Washington, DC 2013-10
Subjects:	ADVERSE EFFECTS, AGGLOMERATION ECONOMIES, BASIC METALS, BENCHMARK, BUSINESS ENVIRONMENT, BUSINESSES, COMPETITIVE ADVANTAGE, COMPETITIVENESS, CONSTRUCTION, DATA LIMITATIONS, DEBT, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICY, DIMINISHING RETURNS, DRIVING, DRIVING TIME, ECONOMIC ACTIVITY, ECONOMIC ANALYSIS, ECONOMIC CONDITIONS, ECONOMIC DEVELOPMENT, ECONOMIC DYNAMICS, ECONOMIC GEOGRAPHY, ECONOMIC INTEGRATION, ECONOMIC RESEARCH, ECONOMICS, ELECTRICITY, EQUIPMENT, EQUIPMENTS, EXTERNALITIES, FUEL, GDP, GLOBAL ECONOMY, GROWTH THEORY, HIGHWAY, HIGHWAY IMPROVEMENTS, HIGHWAY PROJECT, HIGHWAYS, HUMAN CAPITAL, INCREASING RETURNS, INDUSTRIAL DEVELOPMENT, INDUSTRIAL STRUCTURES, INFRASTRUCTURE ACCESS, INFRASTRUCTURE PROJECTS, INNOVATION, INPUT USE, INSTITUTION, INTERMEDIATE INPUTS, INTERNATIONAL TRADE, INVENTORY, INVENTORY MANAGEMENT, LABOR MARKETS, LEGAL ENVIRONMENT, LEGAL ENVIRONMENTS, LITERACY RATE, LITERACY RATES, LOCALIZATION, MANUFACTURING, MANUFACTURING INDUSTRIES, MATERIAL, MISSING DATA, MISSING VALUES, MOTOR VEHICLES, NETWORKS, NOISE, OPEN ACCESS, POLICY MAKERS, POLITICAL ECONOMY, POLLUTION, POLLUTION COSTS, POPULATION DENSITY, PRODUCT DIFFERENTIATION, PRODUCTION FUNCTION, PRODUCTION FUNCTIONS, PRODUCTION INPUTS, PRODUCTIVITY, RADIO, RESULT, RESULTS, ROADS, TECHNOLOGICAL CHANGE, TELECOMMUNICATIONS, TELEVISION, TRADE LIBERALIZATION, TRADE REFORMS, TRANSPORT, TRANSPORT EQUIPMENT, TRANSPORTATION, TRAVEL TIME, TRUE, USES, WEALTH,
Online Access:	http://documents.worldbank.org/curated/en/2013/10/18405000/input-usage-productivity-indian-manufacturing-plants https://hdl.handle.net/10986/16874
Tags:	Add Tag No Tags, Be the first to tag this record!