CXO

Technical Change In India's Organized Manufacturing Sector

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The authors use the real wage-profit rate schedule to examine the direction of technical change in India's organized manufacturing sector during 1980-2007. They find that technical change was Marx biased (i.e., declining capital productivity with increasing labor productivity) through the 1980s and 1990s; and Hicks neutral (increasing both capital and labor productivity) post-2000. The historical experience suggests that Hicks-neutral technical change may only be a passing phase before they see a return to the long-term trend of Marx-biased technical change.