Bishwanath Goldar

Bio: Bishwanath Goldar is an academic researcher. The author has contributed to research in topics: Total factor productivity & Productivity. The author has an hindex of 3, co-authored 3 publications receiving 77 citations.

Investment climate and total factor productivity in manufacturing: Analysis of Indian states

Abstract: Liberalisation initiatives have been taken by India with a view to improve the efficiency of manufacturing industries and achieving faster GDP growth. The present paper investigates the influence of Investment Climate (IC) on the levels of total factor productivity (TFP) in the organised manufacturing sector across the major Indian states. Data from Annual Survey of Induatries (ASI) is used and multilateral TFP indices for the total registered manufacturing sector in all the major states for the period 1980-2000 calculated [WP 127].

Manufacturing Productivity in Indian States

Abstract: This paper analyses the influence of the investment climate on total factor productivity in the registered manufacturing sector across the major Indian states. We find that a market friendly investment climate is important for achieving higher levels of productivity. This conclusion is robust, unaffected by the choice of the investment climate indicator. A market friendly investment climate, however, does not mean that the regulatory function of the government should be done away with. Government regulation is crucial to address market failures and to protect social interests, but the policies and practices of the governments should be transparent and designed without distorting the incentives of the firms to invest and grow

Assessing the Impact of Infrastructure Quality on Firm Productivity in Africa : Cross-Country Comparisons Based on Investment Climate Surveys from 1999 to 2005

Abstract: This paper provides a systematic, empirical assessment of the impact of infrastructure quality on the total factor productivity (TFP) of African manufacturing firms. This measure is understood to include quality in the provision of customs clearance, energy, water, sanitation, transportation, telecommunications, and information and communications technology (ICT). Microeconometric techniques to investment climate surveys (ICSs) of 26 African countries are carried out in different years during the period 2002–6, making country-specific evaluations of the impact of investment climate (IC) quality on aggregate TFP, average TFP, and allocative efficiency. For each country the impact is evaluated based on 10 different productivity measures. Results are robust once controlled for observable fixed effects (red tape, corruption and crime, finance, innovation and labor skills, etc.) obtained from the ICSs. African countries are ranked according to several indices: per capita income, ease of doing business, firm perceptions of growth bottlenecks, and the concept of demeaned productivity (Olley and Pakes 1996). The countries are divided into two blocks: high-income-growth and low-income-growth. Infrastructure quality has a low impact on TFP in countries of the first block and a high (negative) impact in countries of the second. There is significant heterogeneity in the individual infrastructure elements affecting countries from both blocks. Poor-quality electricity provision affects mainly poor countries, whereas problems dealing with customs while importing or exporting affects mainly faster-growing countries. Losses from transport interruptions affect mainly slower-growing countries. Water outages affect mainly slower-growing countries. There is also some heterogeneity among countries in the infrastructure determinants of the allocative efficiency of African firms.

Assessing the Impact of Infrastructure Quality on Firm Productivity in Africa

Abstract: This paper provides a systematic, empirical assessment of the impact of infrastructure quality on the total factor productivity (TFP) of African manufacturing firms. This measure is understood to include quality in the provision of customs clearance, energy, water, sanitation, transportation, telecommunications, and information and communications technology (ICT). We apply microeconometric techniques to investment climate surveys (ICSs) of 26 African countries carried out in different years during the period 2002–6, making country‐specific evaluations of the impact of investment climate (IC) quality on aggregate TFP, average TFP, and allocative efficiency. For each country we evaluated this impact based on 10 different productivity measures. Results are robust once we control for observable fixed effects (red tape, corruption and crime, finance, innovation and labor skills, etc.) obtained from the ICSs. We ranked African countries according to several indices: per * This study is part of the Africa Infrastructure Country Diagnostic (AICD), a project designed to expand the world’s knowledge of physical infrastructure in Africa. Financing for AICD is provided by a multi-donor trust fund to which the main contributors are the Department for International Development (United Kingdom), the Public Private Infrastructure Advisory Facility, Agence Francaise de Developpement, and the European Commission. Inquiries concerning the availability of datasets should be directed to vfoster@worldbank.org. The authors are indebted to Vivien Foster and her group of researchers at the World Bank for providing data sets and further insight into the African region. All errors in this report are the sole responsibility of the authors. A version of this paper is available in the Policy Research Working Paper Series of the World Bank. † Telefonica Chair of Economics of Telecommunications, Department of Economics, Universidad Carlos III de Madrid; alvaroe@eco.uc3m.es The World Bank and the University of California, San Diego; jguasch@worldbank.org. § Department of Economics, Universidad Carlos III de Madrid; jpizquie@eco.uc3m.es. CHAPTER II ‐ ASSESSING THE IMPACT OF INFRASTRUCTURE QUALITY ON FIRM PRODUCTIVITY IN AFRICA 2 capita income, ease of doing business, firm perceptions of growth bottlenecks, and the concept of demeaned productivity (Olley and Pakes 1996). We divided countries into two blocks: high‐income‐ growth and low‐income‐growth. Infrastructure quality has a low impact on TFP in countries of the first block and a high (negative) impact in countries of the second. We found heterogeneity in the individual infrastructure elements affecting countries from both blocks. Poor‐quality electricity provision affects mainly poor countries, whereas problems dealing with customs while importing or exporting affects mainly faster‐growing countries. Losses from transport interruptions affect mainly slower‐growing countries. Water outages affect mainly slower‐growing countries. There is also some heterogeneity among countries in the infrastructure determinants of the allocative efficiency of African firms.

Information technology and productivity : evidence from India's manufacturing sector

Abstract: While India's remarkable performance in IT software and service exports may be inspirational for other Indian industries and more so for other countries in the south, the moot question is how has India fared in terms of harnessing this technology for enhancing manufacturing productivity. This paper is an attempt at addressing this issue by analyzing an unpublished data set on the investment in computers and software at the industry level made available by the CSO. The study finds that low level of IT investment intensity in the manufacturing sector notwithstanding, IT investment does have a positive and significant impact on both partial and total factor productivity. The findings of the paper suggest that in a context wherein the policy makers are concerned with low levels of growth in manufacturing output and productivity, policy measures and institutional interventions towards promoting IT diffusion in the manufacturing sector is likely to give rich dividends.

Productivity Measurement in Indian Manufacturing: A Comparison of Alternative Methods

Abstract: Very few other issues in Indian economic development has generated so much debate than the measurement of total factor productivity (TFP) growth in Indian manufacturing. This debate has intensified following the major economic reforms in 1991. Using three different techniques – growth accounting (non-parametric), production function accounting for endogeniety (semi-parametric) and stochastic production frontier (parametric) – the paper computes the TFP growth of Indian manufacturing for both formal and informal sectors from 1994-95 to 2005-06. The results indicate that the TFP growth of formal and informal sector has differed greatly during this period and that the estimates are sensitive to the technique used. This suggests that any inference on productivity growth in India since the economic reforms of 1991 is conditional on the method of measurement used, and that there is no unambiguous picture emerging on the direction of change in TFP growth in post-reform India.

An Inter-State Perspective on Manufacturing Productivity in India: 1980-81 to 2000-01

Abstract: Industrial performance of various states needs to be viewed in totality, i.e, with respect to growth of output, employment and productivity. Moreover, productivity levels are as important as productivity growth trends, as both are pertinent in the convergence process. This study is an attempt to interpret inter-state differences in productivity movements in organized manufacturing sector, in a larger perspective of employment and output trends. The time-span of the study is 1980-81 to 2000-01 and it encompasses 10 major states of India. The study empirically confirms the existence of inter-state differences in productivity levels and growth rates. It points out that states, such as, Bihar and West Bengal are diverging away from rather than converging to the growth rates of output of organized manufacturing sector at the national level. Though productivity growth in Bihar appears to be high, it has been mainly achieved by joblessness. Madhya Pradesh and Rajasthan, which have been considered as BIMARU states, seem to be good performers from a wider perspective and show the promise to get themselves rid of their economically backward status.