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The Interface of Agricultural and Industrial Growth in the Development Process: Some Facets of the Indian Experience

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  • Ashok Mathur

Abstract

This paper uses national, regional and sub‐regional time series and cross‐sectional data to show that the direct statistical relationship between agricultural and industrial growth is weaker than would be expected. To explain the gap between theoretical expectations and empirical results, the roles of lagged responses, the terms of trade effect, wage‐price movements, initial agricultural productivity, income distribution and some non‐agricultural factors as determinants of industrial growth are assessed. Adequate agricultural growth is important for price stabilization policy and has direct welfare implications for poorer segments of the population. Further, an appropriate policy towards non‐agricultural determinants of industrial growth is needed in order to maximize the impact of agricultural growth on industrial development.

Suggested Citation

  • Ashok Mathur, 1990. "The Interface of Agricultural and Industrial Growth in the Development Process: Some Facets of the Indian Experience," Development and Change, International Institute of Social Studies, vol. 21(2), pages 247-280, April.
    • Handle: RePEc:bla:devchg:v:21:y:1990:i:2:p:247-280
    DOI: 10.1111/j.1467-7660.1990.tb00377.x
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    References listed on IDEAS

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    1. Rangarajan, C., 1982. "Agricultural growth and industrial performance in India:," Research reports 33, International Food Policy Research Institute (IFPRI).
    2. Yotopoulos, Pan A & Lau, Lawrence J, 1970. "A Test for Balanced and Unbalanced Growth," The Review of Economics and Statistics, MIT Press, vol. 52(4), pages 376-384, November.
    3. Mathur, Ashok, 1983. "Regional Development and Income Disparities in India: A Sectoral Analysis," Economic Development and Cultural Change, University of Chicago Press, vol. 31(3), pages 475-505, April.
    4. J. v. Neumann, 1945. "A Model of General Economic Equilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 13(1), pages 1-9.
    5. A. P. Thirlwall, 2015. "A General Model of Growth and Development on Kaldorian Lines," Palgrave Studies in the History of Economic Thought, in: Essays on Keynesian and Kaldorian Economics, chapter 13, pages 302-325, Palgrave Macmillan.
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    Cited by:

    1. Tarlok Singh, 2016. "On the sectoral linkages and pattern of economic growth in India," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 21(2), pages 257-275, April.
    2. Murat Arsel & Servaas Storm, 2015. "Forum 2015," Development and Change, International Institute of Social Studies, vol. 46(4), pages 666-699, July.
    3. Surajit Deb, 2002. "The Debate on Agriculture-Industry Terms of Trade in India," Working papers 109, Centre for Development Economics, Delhi School of Economics.

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