Working Paper: NBER ID: w15976
Authors: Sanghamitra Das; Kala Krishna; Sergey Lychagin; Rohini Somanathan
Abstract: We use a proprietary data set on the floor-level operations at the Bhilai Rail and Structural Mill in India to understand the determinants of changes in plant productivity in 2000-2003. During this period there was a 35 percent increase in output with minimal changes in factors of production, but sizable reductions in production delays. We model interruptions to the production process and find that a large part of these reductions are attributable to training. Our results suggest that specific knowledge-enhancing investments can have very high returns, and that the threat of competition provides powerful incentives to undertake such investments.
Keywords: Productivity; State-Owned Enterprises; Competition; Training
JEL Codes: J24; J48; L32; L61
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| training (M53) | productivity (O49) |
| training interventions (M53) | operational efficiency (D61) |
| competitive pressure (L11) | knowledge-enhancing investments (O36) |
| specific training on rail quality (L92) | productivity improvements (O49) |