What Really Affects Plant-level Productivity?

Shweta Jain

Review of Market Integration, 2019, vol. 11, issue 3, 138-150

Abstract: This article investigates the plant-level characteristics that can affect plant-level productivity. Using Annual Survey of Industries (ASI) data from 1998–1999 to 2012–2013, we find that plant-level productivity is positively correlated with the number of products produced in the plant. It implies that the multi-product plants are relatively more productive than plants that produce only one product. We also find that plants are more productive if they enter the export market, and plant-level productivity is negatively associated with the ratio of production to non-production workers. This finding supports the fact that the plants with more skilled labour compared to unskilled labour are comparatively more productive. Additionally, we find that information and communication technology (ICT) has a significant and positive association with a plant’s productivity level.

Keywords: Productivity; export; multi-product; fixed effect regression; information and communication technology; size; India (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:sae:revmar:v:11:y:2019:i:3:p:138-150

DOI: 10.1177/0974929220935010

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