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Changes in utilization and productivity in a deregulating economy

Bhalotra, SR (1998) 'Changes in utilization and productivity in a deregulating economy.' Journal of Development Economics, 57 (2). 391 - 420. ISSN 0304-3878

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Abstract

This paper provides an estimate of the production cost of losses in official working hours and of utilization-adjusted productivity growth using robust methods on a panel of industry-region data for Indian manufacturing in the 1980s. Time losses such as arise on account of power cuts and materials shortages appear to have cost the economy a sixth of its potential manufacturing output in 1979. Concomitant with deregulation and increased public investment in infrastructure in the 1980s, there was a significant recuperation of lost time. Although this contributed 25% of the observed acceleration in output, it has escaped notice so far. Recognizing the increase in factor utilization produces more modest estimates of productivity growth and casts doubt on its sustainability.

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HN Social history and conditions. Social problems. Social reform
H Social Sciences > HT Communities. Classes. Races
Divisions: Faculty of Social Sciences > Institute for Social and Economic Research
Depositing User: Sonia Bhalotra
Date Deposited: 13 Oct 2016 14:24
Last Modified: 17 Aug 2017 17:24
URI: http://repository.essex.ac.uk/id/eprint/17533

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