Analysis of Manufacturing Sector in the Southern States of India Before and After Economic Reform

Abstract

The regional variation in industrial development has been a matter of concern to the policy newlinemakers in India. Faced with wide spread disparity, the policy makers have promoted the plan of newline balanced regional development right. The economy of southern region plays a significant role in newlineachieving higher GDP growth rate of the country. Further the southern states are galloping much newlineahead of the poorest states with higher economic growth rates. This study is based on secondary newlinedata at the aggregate level for the four states of India and for the southern states as a whole. The newlinedata were collected from Annual Survey of Industries. The period from 1970-71 to 1990-91 was pre newlinereform period and 1991-92 to 2013-14 was post reform period. To measure technical, scale, cost newlineand allocative efficiency in the manufacturing sector of southern states of India before and after newlinereform period. To examine causal relationship among labour productivity, real wage and inflation newlinein the manufacturing sector of southern states of India before and after reform period. The newlinemanufacturing sector of southern states of India before and after reform period. There is no newlinesignificant difference in the technical, scale, cost and allocative efficiency level. The theoretical newlinecausal relationship existing among labour productivity, real wage and inflation are not proved. DEA newlineModel and Granger Causality test. As per the findings of the study in order to improve the efficiency newlinelevel - technical, scale, cost and allocative efficiency in all the states the educational system newlinemust be reorganised to produce a profile of skilled manpower. When allocative inefficiency is newlineconsiderable, a policy to improve resource allocation should be pursued, which can be done by newlinepromoting free markets and lessening governmental intervention. newlineMajor objectives : newline1. To measure technical, scale, cost and allocative efficiency in the manufacturing sector of newlinesouthern states of India before and after reform period. newline2. To analyze productivity change and decomposing the productivity change