Productivity Growth in Organized Manufacturing in Telangana

This paper makes an attempt to estimate Total Factor Productivity (TFP) growth by using both growth accounting approach and production function approach. Kendrick, Solow and Tornqvist-Theil indices are used to estimate TFP. TFP growth is also calculated by estimating Cobb-Douglas production function, Constant Elasticity of Substitution (CES) production function and Translog production function.The study covers the time-period from 1980-81 to 2012-13. Analysis and estimates are carried out for sub-period representing post-reforms from the year 1990-91 to 2012-13. In order to explain the study of labour productivity and its determinants and impacts on the other variables, annual data on value added, capital, employment, labour payment, profit are taken for organized manufacturing for the period 1990-91 to 2008-09.