Journal of Industry, Competition and Trade

, Volume 15, Issue 4, pp 411–434 | Cite as

Technology Import and Manufacturing Productivity in India: Firm Level Analysis



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.


Technology imports Organised manufacturing Firm level productivity Levinsohn and Petrin Prowess India 

JEL Classification

F14 O33 L6 O53 



I am thankful to Prof. Alokesh Barua, Prof. K.L Krishna and Prof. Prema Chandra Athukorala for the extensive comments and suggestions to the earlier version of the paper. I thank Prof. Parameswaran for his valuable help and suggestions. I like to thank two anonymous referees of this journal for providing constructive comments and suggestions leading to substantial improvement of the paper. However, I am solely responsible for any errors and omissions that may remain.


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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  1. 1.Indian Institute of Foreign Trade, Research DivisionQutab Institutional AreaNew DelhiIndia

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