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Guest editorial

Guest editorial Editors’ introduction productivity growth in India: issues and measurement Why productivity Productivity growth, driven by technological progress, plays a prime role in accelerating the economic growth, development and welfare of an economy. An improvement of technology shifts the frontier of production function and hence brings the opulence in the human life. Traditionally, it is assumed to affect only the long-run growth, but the random shocks of productivity growth can even influence short-run economic activities and business cycles. Fair understanding of the shocks of productivity growth and technological change working on the core macroeconomic variables is the key to stabilize the economy from short-run fluctuations. Moreover, the level of development of a typical underdeveloped economy depends on the size of the modern sector, which is determined by the size of productivity difference between the sectors. Because of the ability of increased production given same resources, the technology tends to reduce the marginal cost and unit price of goods and services and hence raises the welfare level. However, the productivity growth does not accelerate automatically, and the impact may not be welfare enhancing for every sector and section of individuals, especially for employment. The technological progress for increased productivity is a http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Indian Growth and Development Review Emerald Publishing

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References (15)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1753-8254
DOI
10.1108/IGDR-04-2020-127
Publisher site
See Article on Publisher Site

Abstract

Editors’ introduction productivity growth in India: issues and measurement Why productivity Productivity growth, driven by technological progress, plays a prime role in accelerating the economic growth, development and welfare of an economy. An improvement of technology shifts the frontier of production function and hence brings the opulence in the human life. Traditionally, it is assumed to affect only the long-run growth, but the random shocks of productivity growth can even influence short-run economic activities and business cycles. Fair understanding of the shocks of productivity growth and technological change working on the core macroeconomic variables is the key to stabilize the economy from short-run fluctuations. Moreover, the level of development of a typical underdeveloped economy depends on the size of the modern sector, which is determined by the size of productivity difference between the sectors. Because of the ability of increased production given same resources, the technology tends to reduce the marginal cost and unit price of goods and services and hence raises the welfare level. However, the productivity growth does not accelerate automatically, and the impact may not be welfare enhancing for every sector and section of individuals, especially for employment. The technological progress for increased productivity is a

Journal

Indian Growth and Development ReviewEmerald Publishing

Published: Apr 20, 2020

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