{"title":"What Role Has Structural Change Played in Growth Accelerations for the Indian States? An Analysis for Pre- and Post-liberalization Periods","authors":"V. Kathuria, R. Natarajan","doi":"10.1177/13915614221076210","DOIUrl":null,"url":null,"abstract":"This article analyses the role of structural change in explaining growth accelerations and decelerations in Indian states over the 30 years from 1980–1981 to 2010–2011. We employ conventional shift-share analysis to measure the sectoral contribution to productivity growth. We apply this methodology to an eight-sector data set for 15 major states. Our results show that productivity changes ‘within’ sectors explain the considerable improvement in productivity in Indian states rather than the reallocation of labour to more productive sectors. At the aggregate level and for several states, significant contribution to productivity improvements has emanated from agriculture, trade and manufacturing sectors. In all these sectors, the main contribution emerged from within sector productivity improvements, not from structural changes. However, the reallocation effect has appeared to deliver marginal gains to overall productivity in recent periods, which is evident for construction, manufacturing, trade and services sectors. JEL Classification: O10, O40, O47, R11","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2022-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"South Asia Economic Journal","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1177/13915614221076210","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
This article analyses the role of structural change in explaining growth accelerations and decelerations in Indian states over the 30 years from 1980–1981 to 2010–2011. We employ conventional shift-share analysis to measure the sectoral contribution to productivity growth. We apply this methodology to an eight-sector data set for 15 major states. Our results show that productivity changes ‘within’ sectors explain the considerable improvement in productivity in Indian states rather than the reallocation of labour to more productive sectors. At the aggregate level and for several states, significant contribution to productivity improvements has emanated from agriculture, trade and manufacturing sectors. In all these sectors, the main contribution emerged from within sector productivity improvements, not from structural changes. However, the reallocation effect has appeared to deliver marginal gains to overall productivity in recent periods, which is evident for construction, manufacturing, trade and services sectors. JEL Classification: O10, O40, O47, R11
期刊介绍:
The South Asian nations have progressively liberalized their economies in recent years in an effort to integrate with the world economy. They have also taken steps to enhance multilateral and regional economic integration. Even though the South Asian economies have grown at an average rate of more than 5 per cent over the last few years, roughly 40 per cent of their people still live below the poverty line. Hence, the South Asian region continues to face many challenges of economic and social development. The South Asia Economic Journal (SAEJ) is designed as a forum for informed debate on these issues, which are of vital importance to the people of the region who comprise one-sixth of the world’s population. The peer-reviewed journal is devoted to economic analysis and policy options aimed at promoting cooperation among the countries comprising South Asia. It also discusses South Asia’s position on global economic issues, its relations with other regional groupings and its response to global developments. We also welcome contributions to inter-disciplinary analysis on South Asia. As a refereed journal, SAEJ carries articles by scholars, economic commentators,policy-makers and officials, from both the private and public sectors. Our aim is to create a vibrant research space to explore the multidimensional economic issues of concern to scholars working on South Asia. Among the issues debated in relation to South Asia are: - the implications of global economic trends; - the issues and challenges by WTO; - approaches to industrialization and development; - the role of regional institutions such as the SAARC; - the relationship between SAARC and other regional economic groupings such as ASEAN; - the implications of economic liberalization for trade and investment in the region; - new initiatives that can be launched to enhance economic cooperation among the South Asian countries both on a bilateral and a regional basis.