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• W223331707 abstract "This study attempts to estimate the economic returns to scale, marginal productivities of labour and capital inputs for two-digit level industries in India's unorganised manufacturing sector. The results show that the elasticity of output with respect to labour and capital has increased and significantly contributed to the output growth during the post-reform period compared with pre-reform period. The sum of elasticities of labour and capital is greater than unity in all types at industries in 2005/06 at the aggregate level. The estimated coefficient of the year dummy variable for 1989/90 is negative in the Cobb-Douglas, Translog and CES production functions. The coefficient estimates for year dummies reflect the noticeable output differential at aggregate and sub-sector levels in 2005/06. Introduction The studies on the unorganised sector or 'informal sector' have taken their impetus from the seminal work of Keith Hart on informal income opportunities in urban Ghana (Hart 1973). The availability of a rich database generated through surveys of NSSO and the CSO has served as a vast canvas for research work on this sector (Chadha & Sahu 2006). The unorganised sector provides livelihood to about 70-80 per cent of the workforce in the developing economies (Agenor 1996). In India, this sector accounts for 93 per cent of the workforce and 60 per cent of GDP (Kabra 2003). The manufacturing factory sector is designated as organised or registered and the non-factory sector is called the unregistered or unorganised segment on the basis of employment, size of plant, machinery etc. Among the sub-sectors of the unorganised sector like manufacturing, trade & repair service, construction, hotel & restaurant, transport, storage & communication, finance, real estate, health & social work, the share of enterprises in manufacturing sector alone comes to 32 per cent of enterprises and provides employment for about 37 per cent of the workforce in the Indian economy (NSSO 1999/2000). The 62nd round of NSSO (2005/06) has reported that there were 17 million unorganised manufacturing enterprises providing jobs for about 36 million people in 2005/ 06. During 2006-07, the manufacturing sector had a share of about 16 per cent in the GDP at factor cost. Studies have compared the growth rate of employment, enterprises and productivities of labour and capital between organised and unorganised sectors during the pre- and post-reform periods using the NSSO and CSO data (Kundu 1993, Mitra 1994, Kundu & Lalitha 1998, Mitra 1998, Unni & Rani 2003, Mukherjee 2004, Rani & Unni 2004, Chadha & Sahu 2006). There are a few studies (Goldar & Mitra 1999, Unni et al. 2001) which have analysed the total and partial factor productivities in the unorganised manufacturing sector during the 80s and 90s. There is hardly any study which attempted to apply the production function as a tool to analyse the marginal productivities of labour and capital and degree of economies of scale by enterprise types in the context of Indian unorganised manufacturing sector. This study estimates the returns to scale, elasticities and marginal productivities of labour and capital inputs for two digit industry groups at the aggregate and subsector levels, besides, analyzing the growth rate of employment, enterprises, fixed capital, gross value added and partial productivities of labour and capital and capital intensity. Sources of Data National Sample Survey Organisation (NSSO)'s quinquennial enterprise survey provides information about the unorganised manufacturing sector enterprises on things like employment, enterprises, fixed capital, gross value added per worker/enterprise and total inputs at two-digit level enterprises viz., Own Account Manufacturing Enterprises (OAMEs), Non-Directory Manufacturing Establishments (NDMEs) and Directory Manufacturing Establishments (DMEs) at the states and industry levels. …" @default.
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• W223331707 date "2011-07-01" @default.
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• W223331707 title "Growth & Productivity of the Unorganized Manufacturing Sector in India" @default.
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