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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.
But the coefficients of "[a.sub.3"] are not significantly different from zero for aggregate and sub-sector levels except in the case of NDMEs implying a Cobb-Douglas production function.
At the sub-sector level, the rate of return to scale is greater than one in 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.
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