Development : A Study of the Indian Manufacturing Industry

Hulten, Charles ; Bennathan, Esra ; Srinivasan, Sylaja

Oxford University Press on behalf of the World Bank

关键词: manufacturing;    industrial policy;    productivity;    infrastructure;    Solow productivity residual;   

DOI  :  10.1093/wber/lhj007
RP-ID  :  77518

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

If infrastructure tends to generatespillover externalities, as has been the assumption in muchof the development literature, one may reasonably look forevidence of such indirect effects in the accounts ofmanufacturing industries. Empirical support for thisassumption has so far been ambiguous. This analysis ofIndian data, however, reveals substantial externalityeffects from the states' infrastructure tomanufacturing productivity. The analysis separates thedirect effects of roads and electricity, as mediated by theinfrastructure services purchased by manufacturingindustries along with other intermediate inputs, from theindirect effects, as measured by the impact ofinfrastructure capacity on the Solow productivity residual.In the 20 years from 1972 to 1992, growth of road andelectricity-generating capacity seems to have accounted fornearly half the growth of the productivity residual ofIndia's registered manufacturing.