Input Usage and Productivity in Indian Manufacturing Plants
This paper analyzes the scale and productivity consequences of varied input use in Indian manufacturing using detailed plant-level data. Counts of distinct material inputs are higher in urban settings than in rural locations, unconditionally and co...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2013/10/18405000/input-usage-productivity-indian-manufacturing-plants http://hdl.handle.net/10986/16874 |
| Summary: | This paper analyzes the scale and
productivity consequences of varied input use in Indian
manufacturing using detailed plant-level data. Counts of
distinct material inputs are higher in urban settings than
in rural locations, unconditionally and conditional on plant
size, and they are also higher in the organized sector than
in the unorganized sector. At the district level, higher
input usage in the organized sector is generally observed in
wealthier districts and those with greater literacy rates.
If looking within states, the usage is more closely
associated with electricity access, population density, and
closer spatial proximity to one of India's largest
cities. Plants in the organized sector utilizing a greater
variety of inputs display higher productivity, with the
effects mostly concentrated among smaller plants with fewer
than 50 employees. For the unorganized sector, there is
little correlation of input counts and local conditions, for
better or for worse, and a more modest link to productivity outcomes. |
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