ABSTRACT
As documented in Chapter 4, most of the empirical studies on productivity in India have focused on the total factor productivity growth (TFPG) in organized manufacturing sector with relative neglect of the unorganized sector. This chapter estimates TFPG of Indian manufacturing for both organized and unorganized sectors from 1989-90 to 2005-06 using three different techniques — growth accounting (GA) (non-parametric), production function with correction for endogeneity — Levinsohn-Petrin (LP) (semi-parametric) and stochastic production frontier analysis (SFA) (parametric).
