J-Curve of Productivity and Growth

Download or read book J-Curve of Productivity and Growth written by Mr.Arvind Virmani and published by International Monetary Fund. This book was released on 2011-07-01 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Most estimates of Indian manufacturing productivity find a slowdown in the 1990s. This has puzzled analysts, given that 1990s reforms were deeper and wider than the 1980s reforms that raised the growth rate of the Indian economy by 2 per cent points. This paper tests the hypothesis of the J curve of Productivity and Growth following major liberalization and finds it to be broadly supported by the data: Technological obsolescence, gradual adoption of new technology and learning by doing result in negative effects on measured productivity.