Indian Growth and Development Review最新文献

{"title":"Does economic and policy uncertainty impact corporate policies? Evidence from India","authors":"Vishnu K. Ramesh","doi":"10.1108/igdr-09-2022-0107","DOIUrl":"https://doi.org/10.1108/igdr-09-2022-0107","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to examine the role of economic political uncertainty (EPU) on various corporate policies, namely, cash reserves, investment, capital structure and operating activities of Indian listed firms.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>To assess the influence of policy-related uncertainties, the author uses the India-specific EPU news-based index constructed by Baker <em>et al.</em> (2016) as a proxy for policy uncertainties. This study uses data from listed Indian firms spanning the period 2003 to 2019. The author uses panel regression models with firm-fixed effects to analyze the impact of EPU on corporate policies, including cash reserves, leverage and CAPEX, while considering key control variables.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>In response to heightened EPU, firms tend to increase their cash reserves, curtail their investment activities and favour secured financing options. Notably, this study aligns with the “real options” framework, demonstrating that firms with substantial investment irreversibility significantly reduce their capital expenditures during periods of elevated EPU. Additionally, the results reveal that rising EPU corresponds to heightened borrowing costs and increased operating expenses for firms.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>In contrast to prior research that predominantly investigated the impact of EPU on the decisions of listed firms in developed markets, this study delves into the role of EPU on corporate policies among listed firms in India. This focus is particularly relevant, given the significant policy changes that have transpired in the Indian business landscape in recent years.</p><!--/ Abstract__block -->","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":"28 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2024-02-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139678513","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"DAY NRLM scheme and its impact on women empowerment: a case of Morigaon district of Assam, India","authors":"Sanjeev Kumar Ningombam, Sudeshna Bordoloi","doi":"10.1108/igdr-08-2022-0103","DOIUrl":"https://doi.org/10.1108/igdr-08-2022-0103","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to examine the political, economic, social and technological (PEST) factors of women empowerment in the context of rural development under the initiatives of the National Rural Livelihood Mission (NRLM).</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The unit of analysis for this study is 459 samples. Non-probability sampling technique has been used for this study. Schedule/questionnaires have been circulated among the women in each block cluster. Frequencies have been used to represent the data against each statement. Non-parametric chi-square test has been used to examine the relationship between empowerment and political, economic, social, technological factors and interpersonal skills.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>Statistical analysis shows that the Deendayal Antayodaya Yojana (DAY)-NRLM scheme has brought significant changes and development to women in political, social, economic and technological areas. It was observed that women are economically empowered and contribute to the economic upliftment of the family. Most of the respondents strongly felt that after being associated with DAY-NRLM, they were empowered to contribute efficiently to the social development process and activities.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>The findings of this study highlight the impact of DAY-NRLM implementation at block levels of a district in India. Subsequent research may be carried to measure the effectiveness of the capacity-building program conducted under the banner of DAY-NRLM.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>Women empowerment is not limited to awareness, whereas it needs a complete set of initiatives backed with support systems. Few critical interventions could be building strong networks, enhancing financial management, encouraging the spirit of entrepreneurship among self-help group workers, providing easy access to credit, mentoring, handholding, continuous monitoring and evaluation.</p><!--/ Abstract__block -->\u0000<h3>Social implications</h3>\u0000<p>This study focuses on the impact of the DAY-NRLM scheme on women’s empowerment in the Morigaon district. The inferences from the study throw light on the empowerment of women <em>vis-à-vis</em> political, economic, social and technological factors.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study is a primary study conducted in the Morigaon District of Assam. This is a new line of policy research that approaches the women empowerment with the PEST parameters.</p><!--/ Abstract__block -->","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":"12 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2024-01-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139469899","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Spillover effect of foreign direct investment on wage-inequality in Indian manufacturing industries","authors":"Arpit Gupta, Arya Kumar Srustidhar Chand","doi":"10.1108/igdr-03-2023-0041","DOIUrl":"https://doi.org/10.1108/igdr-03-2023-0041","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>The purpose of this paper is to study the spillover effects of foreign direct investment (FDI) on skilled–unskilled wage inequality in the Indian manufacturing industries.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The authors show theoretically with a model of spillover that if foreign firms (receiving FDI) have a negative spillover effect on domestic firms (not receiving FDI), then the level of capital and skilled workers in the domestic firms falls down. Consequently, the authors conduct an empirical analysis by using system GMM estimation technique on the firm-level data of the Indian organised manufacturing sector.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The authors show that wage inequality worsens when there is negative spillover effects like competition spillover or skill spillover effect of FDI in India.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>To the best of the authors’ knowledge, this is the first attempt to measure the various spillover effects of FDI on the wage inequality in the Indian manufacturing industries by using firm-level data.</p><!--/ Abstract__block -->","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":"1 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2023-12-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138681999","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Informal sector in India and adoption of digital technologies","authors":"Nabamita Dutta, Saibal Kar, Supratik Guha","doi":"10.1108/igdr-12-2022-0144","DOIUrl":"https://doi.org/10.1108/igdr-12-2022-0144","url":null,"abstract":"&lt;h3&gt;Purpose&lt;/h3&gt;\u0000&lt;p&gt;According to the Government of India’s Ministry of Labour and Employment Report (2015), almost 90% of the Indian workforce can still be categorized as informally employed, generating approximately 50% of the national product. Challenges with data availability have made a rigorous analysis of the informal economy in India often difficult and inadequate for policy formulations. This study aims to fill the gap by providing an empirical analysis of the informal economy in India using micro-data from the World Bank’s Informal Enterprise Surveys.&lt;/p&gt;&lt;!--/ Abstract__block --&gt;\u0000&lt;h3&gt;Design/methodology/approach&lt;/h3&gt;\u0000&lt;p&gt;The authors contribute by empirically testing the association between the adoption of digital technology (payments) and firm performance proxied by firm sales. Matching models are used to mitigate sample selection bias arising out of simultaneous sample selection.&lt;/p&gt;&lt;!--/ Abstract__block --&gt;\u0000&lt;h3&gt;Findings&lt;/h3&gt;\u0000&lt;p&gt;The results suggest that the participation in digital platforms, namely, use of digital payment instruments, is associated with higher sales for firms. The results of this study also show that adoption of digital payments helps in both situations – whether a firm has been using digital technology or has just started using it since the outbreak.&lt;/p&gt;&lt;!--/ Abstract__block --&gt;\u0000&lt;h3&gt;Research limitations/implications&lt;/h3&gt;\u0000&lt;p&gt;More in-depth data over time, spanning across more cities of India, is needed to conduct a further detailed investigation.&lt;/p&gt;&lt;!--/ Abstract__block --&gt;\u0000&lt;h3&gt;Social implications&lt;/h3&gt;\u0000&lt;p&gt;The results should allow policymakers in India to reconsider youth-centric and women-centric business needs, even within the informal sector, which does not often enter the purview of the government but remains responsible for the growth and sustenance of 90% of the country’s workforce. If further research on this issue could engage with the impact of demonetization of currency in 2016 as a lagged shock on sales and reestimate subsequent growth, it would perhaps offer a wider spectrum of how the performance of the informal economy in India affects the entire economy, which has over the last four years and before the onset of Covid reported slower growth.&lt;/p&gt;&lt;!--/ Abstract__block --&gt;\u0000&lt;h3&gt;Originality/value&lt;/h3&gt;\u0000&lt;p&gt;Productivity is measured in terms of sales of informal firms in India in a regular month or in recent period like last month. Adoption of technology such as making payments using digital platforms can enhance productivity of firms by lowering standard transaction costs and time spent for visiting banks or financial institutions. Albeit not extensively, the literature has investigated digital technology adoption in the context of firms achieving comparative advantage (D’Ippolito &lt;em&gt;et al.&lt;/em&gt; 2019; Scuotto &lt;em&gt;et al.&lt;/em&gt; 2017), firms generating value creation (Magistretti, Dell’Era and Petruzzelli, 2019), and in helping with strategic initiatives and agility of firms (Ghezzi and Cavallo, 2018; Piccoli and Ives","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":"64 10","pages":""},"PeriodicalIF":1.4,"publicationDate":"2023-11-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138495068","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The growth of the Indian agro-based industry and its emissions: industrial relevance of the environmental Kuznets curve hypothesis","authors":"Nivaj Gogoi","doi":"10.1108/igdr-02-2023-0009","DOIUrl":"https://doi.org/10.1108/igdr-02-2023-0009","url":null,"abstract":"Purpose The modernization of the agro-based industry has encouraged the application of inorganic fertilizers to increase productivity. However, such fertilizer emissions may pose harmful environmental effects in the long run. This study aims to empirically explore the matter by applying the environmental Kuznets curve (EKC) hypothesis in the Indian agro-based industry. Design/methodology/approach The study builds two models considering nitrous oxide emission levels from inorganic (synthetic) and organic (manure) fertilizers to evaluate the safer option for the environment. The validity of an industry-specific EKC (IEKC) is tested for the models considering time series data from 1975 to 2019. Here, the autoregressive distributed lag model is applied for the 45 years long time series analysis to test the hypothesis with respect to inorganic and organic fertilizers emissions. Findings The existence of the IEKC is rejected by the inorganic fertilizer emissions model. Its U-shaped curve implies that applying such fertilizers will gradually cause degrading environmental effects. On the other hand, the organic fertilizer emissions model supports the existence of an inverted U-shaped IEKC. It proves that organic fertilizers are a better choice for safeguarding the environment in the long run. Originality/value Applying the EKC hypothesis on an industrial level can signify whether an industry worsens the environment in the long run. However, very few studies have explored such an application of the hypothesis in the past. Moreover, the literature could not find any previous study exploring the environmental effects of inorganic and organic fertilizers by analyzing the EKC hypothesis. The hypothesis can offer such insights with simplified empirical assessment.","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135874282","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"A critique of the national asset reconstruction company, India’s bad bank","authors":"Rohit Prasad","doi":"10.1108/igdr-03-2023-0028","DOIUrl":"https://doi.org/10.1108/igdr-03-2023-0028","url":null,"abstract":"Purpose This study aims to provide a critique of the institutional framework of the National Asset Reconstruction Company Limited (NARCL), India’s “bad bank.” Design/methodology/approach The approach followed is the development of an economic model of the gains to trade of an Asset Reconstruction Company. Findings Using an economic model, the paper shows that the rules of the game create an uneven playing field and are likely to lead to a systematic overpricing of nonperforming loans (NPLs). While this might increase the upfront cash received by the bank, it will come at the cost of higher liabilities for the government on account of the sovereign guarantee that is part of the proposed structure. The overpricing is also likely to act as an obstacle to efforts aimed at the revival of the distressed company. The NARCL could become a warehouse for NPLs subverting the objective of reconstruction. Practical implications Solutions to create a vibrant market for NPLs are proposed. Originality/value The Indian case is unique in the sense that a bad bank backed by the government has been introduced after almost two decades of the existence of similar entities in the private sector. To the best of the author’s knowledge, this paper is the first that addresses the design of such a market using economic modeling.","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135343042","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Migration in India under structural transformation","authors":"Yiming Liu","doi":"10.1108/igdr-09-2022-0114","DOIUrl":"https://doi.org/10.1108/igdr-09-2022-0114","url":null,"abstract":"\u0000Purpose\u0000This study aims to answer if inter-state migrants in India play a more active role than their intra-state counterparts in labor force participation and entrepreneurship.\u0000\u0000\u0000Design/methodology/approach\u0000A recursive bivariate probit model is used with an instrumental variable (IV) of the total of inter-state migrants in a city over their historical numbers to tackle the endogeneity issue of the migration decision of the migrants.\u0000\u0000\u0000Findings\u0000Inter-state migrants did a better job than their intra-state counterparts in labor force participation and female inter-state migrants did a better job than their counterparts in wage employment and being day laborers.\u0000\u0000\u0000Research limitations/implications\u0000The data are from IPUMS and there is no updated nationwide data regrading migration and employment for recent years.\u0000\u0000\u0000Practical implications\u0000A randomized controlled trail can be carried out near the borders of two states where there are both significant amounts of inter-state and intra-state migrants.\u0000\u0000\u0000Social implications\u0000The government and international organizations shall focus on cultivating the skills of the female migrants as well as encouraging the entrepreneurship of both types of migrants.\u0000\u0000\u0000Originality/value\u0000The study focus is on the comparison between intra- and inter-state migrants based on nationwide survey data and the usage of recursive bivariate model and an effective Instrumental Variable.\u0000","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":" ","pages":""},"PeriodicalIF":1.4,"publicationDate":"2023-07-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43517344","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Asymmetric information, capacity constraint and segmentation in credit markets","authors":"Pallabi Chakraborty, Amarjyoti Mahanta","doi":"10.1108/igdr-03-2022-0042","DOIUrl":"https://doi.org/10.1108/igdr-03-2022-0042","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to propose a model of competition between a formal lender (bank) and an informal lender (moneylender) with informational asymmetry between these two lenders. Further, the authors introduce capacity constraint on the lending capacity of the moneylender and assume that borrowers differ in risk and wealth.\u0000\u0000\u0000Design/methodology/approach\u0000The solution concept of Nash equilibrium has been used to derive the optimal strategies of the lenders.\u0000\u0000\u0000Findings\u0000The equilibrium strategies in most of the results depend on the difference between the expected returns from risky and safe projects where the risky project has higher expected returns. The credit market is segmented in terms of risk and wealth levels. Rationing of poor safe borrowers from the credit market is inevitable when the moneylender's capacity is sufficiently small, suggesting a low-income trap for them. Further, when moneylender has capacity constraint of some form, a zero-profit outcome is never a Nash equilibrium outcome.\u0000\u0000\u0000Research limitations/implications\u0000There is a possibility of collusion between the lenders. However, the authors do not derive all possible outcomes under capacity constraint\u0000\u0000\u0000Practical implications\u0000When the informal lender has limited capacity, competition between formal and informal lenders may not alleviate credit rationing, instead aggravate the problem. Thus, the government should devise policies to ensure credit availability to resource poor households\u0000\u0000\u0000Originality/value\u0000While the literature models strategic interaction between lenders under the assumption of zero-profit (Bertrand Paradox) condition, this study shows that zero profit is not the only outcome under such a set-up. Also, in presence of capacity constraint of the moneylender, a zero-profit outcome is never a Nash equilibrium outcome for the lenders. There is an optimal contract at which the lenders differentiate in terms of repayment and collateral and earn positive profits under certain conditions.\u0000","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":" ","pages":""},"PeriodicalIF":1.4,"publicationDate":"2023-05-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42881621","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Why do Indian startups fail? A narrative analysis of key business stakeholders","authors":"Nayanjyoti Goswami, Ashutosh Bishnu Murti, R. Dwivedi","doi":"10.1108/igdr-11-2022-0136","DOIUrl":"https://doi.org/10.1108/igdr-11-2022-0136","url":null,"abstract":"\u0000Purpose\u0000This paper aims to examine the factors that lead to the failure of startups in India and proposes a ‘Four Dimensional (4D) Strategic Framework’ to drive success.\u0000\u0000\u0000Design/methodology/approach\u0000This study is exploratory and uses a narrative analysis methodology to analyse the accounts of key startup stakeholders – founders, investors, former employees and consumers; to identify their failure factors. A conveniently selected sample of 165 startups was studied to understand better the reasons for their failure within a thematic framework developed from David Feinleib’s (2012) handbook “Why Startups Fail”.\u0000\u0000\u0000Findings\u0000Results indicate that a dearth of capital or running out of money and inadequate sales and marketing strategy, which leads businesses to fall behind rivals and lose money on each transaction, are the most common factors for startup failure in India.\u0000\u0000\u0000Originality/value\u0000“Startups” are substantial for emerging economies like India because they fuel technological innovation and economic progress and provide for the modern workforce’s needs and aspirations. However, they seem to be typically unprofitable, with a modest probability of survival. Subsisting studies mainly focus primarily on success factors and very few on why startups fail, with significant disagreement on an appropriate methodology. To the best of the authors’ knowledge, this is the first study that analyses failure factors of Indian startups using narrative analysis of its key stakeholders. It aims to aid the conception of profitable entrepreneurship by reducing the failure frequency in the startup and small business ecology.\u0000","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":" ","pages":""},"PeriodicalIF":1.4,"publicationDate":"2023-04-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44032801","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Towards a better measure of productivity in India: a case of chemical and chemical products industry","authors":"Vipin Valiyattoor, Anup Kumar Bhandari","doi":"10.1108/igdr-08-2022-0092","DOIUrl":"https://doi.org/10.1108/igdr-08-2022-0092","url":null,"abstract":"\u0000Purpose\u0000A brief review of earlier studies on the productivity scenario of Indian industry shows that most of the studies analysed are confined to either parametric approach or growth accounting approach of measuring productivity. At the same time, the few studies based on the non-parametric [namely, Malmquist productivity index (MPI)] overlook the returns to scale conditions as well as the bias involved in the estimation of distance functions. Given this backdrop, this study aims to provide a robust measure of productivity, which considers the returns to scale assumptions and correct for the bias involved in the estimation of productivity.\u0000\u0000\u0000Design/methodology/approach\u0000This study empirically tests for the returns to scale that exists in the chemical and chemical products industry in India. The test result suggests that Ray and Desli (1997) approach of MPI is the appropriate one for the present context. Initially, the conventional Ray and Desli (1997) estimation and decomposition of MPI for the period 2001 to 2017 is being used. Subsequently, to correct for the bias in the estimation of efficiency scores used for the estimation of MPI, the bootstrapping algorithm of Simar and Wilson (2007) has been extended into the context of MPI estimation.\u0000\u0000\u0000Findings\u0000The results from the conventional Malmquist productivity estimates testifies to an improvement of total factor productivity (TFP) in seven out of 16 years under consideration. On the contrary, TFP growth is recorded only in the four years throughout the period after the bias correction. A greater discrepancy between the two measures has been found in the case of scale change factor component of MPI.\u0000\u0000\u0000Practical implications\u0000The technical change (TC) component positively influences TFP, whereas scale change factor (SCF) deteriorates the TFP condition of this industry. It will be appropriate for these firms to identify and operate under an optimal scale of operation, along with reaping the benefits of technological change. From a methodological perspective, researchers should consider the potential bias that arise in estimation of TFP and use a larger sample whenever possible.\u0000\u0000\u0000Originality/value\u0000This paper brings in a new perspective to the existing literature on industrial productivity. As against earlier studies, this study empirically tests the returns to scale of the sector under consideration and uses the most appropriate approach to measure productivity. The effect of sampling bias on TFP and its components is analysed.\u0000","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":" ","pages":""},"PeriodicalIF":1.4,"publicationDate":"2023-03-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49580694","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}