Technology Import and Manufacturing Productivity in India: Firm Level Analysis

摘要

The paper examines the impact of import of technology on productivity of the organised manufacturing sector of India using firm level panel data for the period of 1995-2010. The estimation of an augmented Cobb-Douglas production function using the Levinsohn and Petrin econometric technique suggests that both embodied as well as disembodied forms of technology import have a positive and significant effect on aggregate manufacturing productivity. However, the sectoral estimation results based on technology intensive classification of firms reveal that the embodied technology purchases have a relatively more significant and positive impact across sectors, whereas the disembodied technology imports have positive effect on the productivity of medium technology intensive sectors.