The study empirically investigates region-wise employment performance of micro, small and medium enterprises (MSMEs) in India. It focuses on various methodologies to estimate employment elasticity and used arc elasticity to investigate the regional employment elasticity of MSME sector in India. The study found that in the post liberalisation era MSMEs has witnessed highest employment elasticity than all over India. Regionally, North-Eastern region has recorded highest employment elasticity followed by Eastern region. As MSMEs are being considered as a driver of economic growth and the sector absorbs large number of workforce within its ambit and hence it becomes pivotal to understand which regions have accounted for highest employment elasticity and the determinants that affect the highest employment-growth nexus in the region so as to challenge the demographic dividend in Indian economy.
Volume 12 | Issue 1
Pages: 239-248
DOI: 10.5373/JARDCS/V12I1/20201035