The results of CDPF show that the OAMEs, NDMEs and DMEs of elalsticities of labour and capital have positive effect on the gross value added and are statistically significant and different from zero during the pre-reform and the post-reform periods (Tables 2-7), whereas the elasticity of labour is found to be not significant with unexpected negative sign, particularly in the case of OAMEs at state level and DMEs at industry level in 1984/85.
At sub-sector level, the sum of the elasticities of labour and capital was found to be greater than unity, particularly, in the case of DMEs at state level in 1984/85, NDMEs and DMEs at industry level in 1989/90, OAMEs and NDMEs at state level in 1994/95, OAMEs and DMEs at industry level in 2000/01.
It would be evident that the marginal productivity of labour is higher in the case of NDMEs and DMEs as compared with the OAMEs both at the state and the industry levels during the pre-and post-reform periods.
However the output elasticity of labour is higher than that of capital at the sub-sector level (OAMEs, NDMEs and DMEs) at state level, which implies that the gross value added is relatively more responsive to labour employed in the unorganised manufacturing sector.
At subsector level, the coefficient of the same is not statistically significant particularly in the case of NDMEs at state level and DMEs at industry level.