Productivity in the Era of Trade and Investment Liberalization in India

Very recent years India has witnessed wide-ranging economic reforms in her policies governing international trade and FDI flows. As per the findings of the paper, some of the important determinants of productivity measured by total factor productivity (TFP) include imports of raw materials and capital goods, size of operation, quality of employment captured by wage rates and technology imports measured by royalty payments. The paper makes some broad policy suggestions in the realm of regional integration focusing on trade in goods and services, investment cooperation, R&D cooperation and human resource development in order to harness regional sources of demand impulses.