Manufacturing Productivity Growth in India: Revisiting Verdoorn’s Law

By : D.P. Priyadarshi Joshi , Susanta Kumar Sethy

Page No: 39-52

Abstract
The literature concerning the study of manufacturing productivity has resorted to the Total Factor Productivity (TFP) to examine the dynamism within the manufacturing sector. But in contrast to the conventional practice, the Smithian generalization of ‘Division of labour’ to Young’s critique to the concept as well as the promotion of increasing returns to scale, gives us a different dynamic view of looking at the productivity change and technical progress. The paper intends to look into the vulnerability of the basic Verdoorn’s law in the present post-reform scenario which gives a strong backup to the righteous conceptualization of the classical and the cumulative causation theorist.

Authors :
D.P. Priyadarshi Joshi : Ph.D. research scholar at School of Economics, University of Hyderabad, Hyderabad, India.
Susanta Kumar Sethy : Ph.D. research scholar at School of Economics, University of Hyderabad, Hyderabad, India.