Estimating components of productivity growth of Indian high and medium-high technology industries: A non-parametric approach

Abstract

This paper aims to measures the productivity growth and its components within the Indian high tech and medium high tech industries by employing a non-parametric-Malmquist productivity index over the period of 2008–2018. The findings of this study show that the productivity growth of both high tech and medium high tech industries is increasing over the time. Further, the decomposition analysis of productivity growth reveals that high tech industries are mostly driven by the technical change component (efficiency change has invariant with the time) whereas the medium high tech industries are driven by the Technical efficiency change (catching up effect). The study recommends that boosting the growth of the high tech industry requires efficient use of its resources and the medium high tech industry requires adopting a technological oriented action plan.