[Executive Summary of the Report of the Minor Research Project Submitted to the University Grants Commission, South West Regional Office, Bangalore
by Dr. Philip Varughese (Porattoor), Associate Professor, Dept. of Commerce, St. Thomas College, Kozhencherry.]


PRODUCTIVITY PERFORMANCE OF STATE LEVEL PUBLIC SECTOR
MANUFACTURING UNITS OF KERALA.



The public enterprises have a crucial role to play in the attainment of the objective of economic progress with social justice. The establishment of public enterprises should not be treated as an end in itself. The more important aspect is that they should work efficiently and thereby generate resources to finance their expansion and development so that they do not constitute a drag on the exchequer. It is in this context that the present study intends to examine the productivity performance of public sector manufacturing units (PSMUs) in Kerala. Productivity of PSMUs in Kerala is measured by partial and total factor productivity indices. Partial productivity measures include labour and capital productivity indices. Total factor productivity measures include Solow, Kendrick and Translog indices.


Partial productivity estimated by labour and capital productivity of the aggregate of all manufacturing units exhibited an increasing trend. In the case of total factor productivity also an increasing trend was witnessed during the period of analysis. Among the different categories of PSMUs under study, chemicals, electrical, electronics and engineering industries, labour productivity witnessed an increasing trend. But in textiles and wood based industries there was falling labour productivity. The highest rate of growth of labour productivity was witnessed in engineering industry. Capital productivity relating to chemicals, electrical, electronics and engineering industries showed positive growth rates. Among them engineering industry depicted the highest rate of growth. Textiles and wood based industries had negative growth rates. Total factor productivity showed positive growth rates in the case of chemicals, electrical, electronics and engineering industries. Among them engineering industry had the highest rate of growth of TFP. The remaining two segments viz., textiles and wood based industries had negative growth rates. Thus among the different categories of industries under study engineering industry witnessed the highest rate of growth of both partial and total factor productivity. Wood based industry had quite a poor performance in the case of both partial and total factor productivity.