Efficiency in Indian Rubber Industry: 1991-92 to 2007-08

The efficiency of Rubber industry in India in terms of total factor productivity growth displays favourble increasing trend during post- liberalization period, especially during mid-nineties. The trend for this performance has been intensively researched in this study. Therefore, this study seeks to measure and analyze econometrically the performance efficiency of rubber industry in India in view of total factor productivity growth at aggregate level. Major findings of the present work are not in line with the prevailing opinion. To be more specific, we have found that total factor productivity growth in Rubber industry in India registered significant increasing growth rate after the path breaking economic reforms initiated in 1991.Liberalization process is generally found to have its positive impact on total factor productivity growth of Rubber industry in India. Explicit trade variables as well as macro economic variables have relevant significant impact on total factor productivity growth (TFPG) of Rubber industry of India. Along with conventional approach, we have taken somewhat different approach in the estimating the trend in total factor productivity growth.