Indian Council for Research on International Economic Relations

Completed Details

Estimates of Productivity: KLEMS Project

Project Leader: Deb Kusum Das
Research Team:  Suresh Aggarwal and Abdul Azeez Erumban (external consultants); Sreerupa Sengupta
Commencement: September 2009
Completion:  August 2013
Funded by: Reserve Bank of India

The project attempts to generate industry level productivity estimates for the period 1980-81 to 2008-09 using official national accounts and input-output transaction tables and then uses this to prepare estimates of productivity at a disaggregated level for the economy. Time series data on output, capital, labour and intermediate inputs (energy, material and services) have been prepared for an internationally comparable industrial classification and are being refined further.

The first phase of the project provided estimates of total factor productivity (as well as labour productivity) for 31 sectors of the Indian economy based on a value added production framework using labour and capital as inputs. The second phase provided estimates of total factor productivity (as well as labour productivity) for 26 sectors of the Indian economy using a gross output based KLEMS framework. The third phase will focus on analysing determinants of productivity growth across industries in India, and attempt comparison with other countries. Studies will also be conducted to explore the role of policy on productivity performance. Employment potential, energy intensity, and competitiveness of the different sectors will be analysed.

This project is a part of the World KLEMS initiative, based at Harvard University. It uses a common framework based on gross output function and explicit identification of intermediate inputs and specification of capital services and labour services as inputs for measuring productivity. It is currently being used by a number of developing economies of Asia and Latin America. The project work is being carried out under the research guidance of Professor B.N. Goldar. The research team has benefitted greatly from a wide range of consultations with the Research Advisory Committee members. Professor K. L. Krishna (Chairman), Dr. Isher Judge Ahluwalia, Professor K. Sundaram, Professor Dale Jorgenson, Professor Marcel Timmer, Dr. Bart Van Ark and Professor Mary O. Mahony, Professor T. N. Srinivasan, Dr. Ashok Gulati, Mr. Ramesh Kolli, Dr. T. C. A. Anant, Professor R. Radhakrishna, Professor Arup Mitra, and Mr. Deepak Mohanty have also provided very valuable inputs for the study.

Research

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