Analysis of Perfomance of Aggregate Manufacturing Sector of India in the Pre and Post Liberalisation Period by Testing Select Indicators of Industrial Growth
No Thumbnail Available
Date
2014
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Since Independence India has
achieved self sufficiency in the
manufacturing sector. It is assumed that
growth is needed in manufacturing sector
to eliminate poverty. Hence an attempt in
this paper is made to analyse the
performance of aggregate manufacturing
sector of India considering the pre and post
liberalisation period by testing certain
indicators of development such as ability to
pay hypothesis, verdoorn's law, and wagetechnology
relationship. The reference
period of the shidy for the pre liberalization
covers between 1972-73 and 199-91 and
post liberalization period between 1991-92
and 2010-11. Augmented Dicky Fuller
(ADF) test and linear regression model were
applied to analyse the data. It was found
that labour productivity influenced the
level of wage strongly in both the periods.
In both the periods' verdoorns law was
approved. It was concluded that
productivity can be augmented only
through employment generation and higher
wages.