IDEAS home Printed from https://ideas.repec.org/a/sae/soasur/v23y2016i2p119-134.html
   My bibliography  Save this article

An Assessment of Sectoral Dynamics and Employment Shift in Indian and Chinese Economy

Author

Listed:
  • Waseem Khan
  • Sana Fatima

Abstract

This study has analysed structural transformation and inter-sectoral relationships of the Indian and the Chinese economy. Variation in employment dynamics across the sectors and growth instability is also examined by taking data from the World Development Indicators (WDI, 2015) of the World Bank. The study has revealed that there is a gradual decline in agriculture in both the countries. Both the economies are now concentrating at service sectors. China is fully exploiting its industrial sector potential while India has been lagging behind in this sector. Johansen’s cointegration approach revealed the existence of one cointegration relationship among all the three sectors, namely, agricultural, industrial and services, at 5 per cent level of significance for both the countries. A passive employment shift has been seen from agriculture to non-agriculture sector in India. Occupational transformation in China is faster than India. Policy makers should focus on job generation, especially in services and labour intensive manufacturing sector in India. China should try to create jobs in industrial and services sector because agriculture sector has been sharply declining and is still carrying huge load of employment.

Suggested Citation

  • Waseem Khan & Sana Fatima, 2016. "An Assessment of Sectoral Dynamics and Employment Shift in Indian and Chinese Economy," South Asian Survey, , vol. 23(2), pages 119-134, September.
    • Handle: RePEc:sae:soasur:v:23:y:2016:i:2:p:119-134
    DOI: 10.1177/0971523118765313
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0971523118765313
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0971523118765313?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. S. Mahendra Dev, 2014. "Creating youth employment in Asia," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2014-041, Indira Gandhi Institute of Development Research, Mumbai, India.
    2. Justin Yifu Lin, 2011. "New Structural Economics: A Framework for Rethinking Development," The World Bank Research Observer, World Bank, vol. 26(2), pages 193-221, August.
    3. Deepak Kumar BEHERA, 2015. "Sectoral Occupational Transformation in India: Old Concerns and New Directions," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 15(2), pages 197-212.
    4. Venus Khim-Sen Liew, 2004. "Which Lag Length Selection Criteria Should We Employ?," Economics Bulletin, AccessEcon, vol. 3(33), pages 1-9.
    5. Nelson Mark & Steven Lugauer & Clayton Sadler, 2012. "The Role of Household Saving in the Economic Rise of China," Working Papers 004, University of Notre Dame, Department of Economics, revised Jun 2012.
    6. S.Mahendra Dev, 2014. "Creating Youth Employment in Asia," Working Papers id:6175, eSocialSciences.
    7. de Vries, Gaaitzen J. & Erumban, Abdul A. & Timmer, Marcel P. & Voskoboynikov, Ilya & Wu, Harry X., 2012. "Deconstructing the BRICs: Structural transformation and aggregate productivity growth," Journal of Comparative Economics, Elsevier, vol. 40(2), pages 211-227.
    8. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    9. Margaret S. McMillan & Dani Rodrik, 2011. "Globalization, Structural Change and Productivity Growth," NBER Working Papers 17143, National Bureau of Economic Research, Inc.
    10. John Knight & Sai Ding, 2010. "Why Does China Invest So Much?," Asian Economic Papers, MIT Press, vol. 9(3), pages 87-117, Fall.
    11. Rada, Codrina & von Arnim, Rudiger, 2012. "Structural transformation in China and India: A note on macroeconomic policies," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 264-275.
    12. Enrico Marelli & Marcello Signorelli, 2011. "China and India: Openness, Trade and Effects on Economic Growth," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(1), pages 129-154, June.
    13. Chand, Ramesh & Raju, S.S., 2009. "Instability in Indian Agriculture During Different Phases of Technology and Policy," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 64(2), pages 1-21.
    14. Kaplinsky, Raphael & Messner, Dirk, 2008. "Introduction: The Impact of Asian Drivers on the Developing World," World Development, Elsevier, vol. 36(2), pages 197-209, February.
    15. Rob J. Hyndman & Andrey V. Kostenko, 2007. "Minimum Sample Size requirements for Seasonal Forecasting Models," Foresight: The International Journal of Applied Forecasting, International Institute of Forecasters, issue 6, pages 12-15, Spring.
    16. Barry Bosworth & Susan M. Collins, 2008. "Accounting for Growth: Comparing China and India," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 45-66, Winter.
    17. Aradhna Aggarwal & Nagesh Kumar, 2012. "Structural Change, Industrialization and Poverty Reduction: The Case of India," Development Papers 1206, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office.
    18. Ray, S. K., 1983. "An Empirical Investigation on the Nature and Causes for Growth and Instability in Indian Agriculture: 1950-80," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 38(4), October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Erumban, Abdul Azeez & Das, Deb Kusum & Aggarwal, Suresh & Das, Pilu Chandra, 2019. "Structural change and economic growth in India," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 186-202.
    2. repec:dgr:rugggd:gd-136 is not listed on IDEAS
    3. Vittorio Valli & Donatella Saccone, 2015. "Structural Change, Globalization and Economic Growth in China and India," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 12(2), pages 133-163, December.
    4. Valeriy V. Mironov & Liudmila D. Konovalova, 2019. "Structural changes and economic growth in the world economy and Russia," Russian Journal of Economics, ARPHA Platform, vol. 5(1), pages 1-26, April.
    5. de Vries, Gaaitzen J. & Erumban, Abdul A. & Timmer, Marcel P. & Voskoboynikov, Ilya & Wu, Harry X., 2012. "Deconstructing the BRICs: Structural transformation and aggregate productivity growth," Journal of Comparative Economics, Elsevier, vol. 40(2), pages 211-227.
    6. Ansari, S. A. & Khan, W., 2018. "Relevance of Declining Agriculture in Economic Development of South Asian Countries: An Empirical Analysis," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 10(2).
    7. Longfeng Ye & Peter E. Robertson, 2017. "Migration and Growth in China: A Sceptical Assessment of the Evidence," Economics Discussion / Working Papers 17-03, The University of Western Australia, Department of Economics.
    8. Bishwanath Goldar & K. L. Krishna & Suresh Chand Aggarwal & Deb Kusum Das & Abdul Azeez Erumban & Pilu Chandra Das, 2017. "Productivity growth in India since the 1980s: the KLEMS approach," Indian Economic Review, Springer, vol. 52(1), pages 37-71, December.
    9. repec:dgr:rugggd:gd-121 is not listed on IDEAS
    10. Murat Üngör, 2016. "Did the rising importance of services decelerate overall productivity improvement of Turkey during 2002–2007?," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 19(3), pages 238-261, July.
    11. Aradhna Aggarwal, 2018. "Economic Growth, Structural Change and Productive Employment Linkages in India," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 19(1), pages 64-85, March.
    12. Monojit Chatterji & Sushil Mohan & Sayantan Ghosh Dastidar, 2014. "Relationship Between Trade Openness And Economic Growth Of India: A Time Series Analysis," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 6(1 (March)), pages 45-69.
    13. Mallick, Jagannath, 2017. "Structural Change and Productivity Growth in India and the People’s Republic of China," ADBI Working Papers 656, Asian Development Bank Institute.
    14. Wani, M.H & Bazaz, N.H. & Paul, R.K. & Itoo, S.A. & Bhat, A., 2015. "Inter-Sectoral Linkages in Jammu & Kashmir Economy — An Econometric Analysis," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 28(Conferenc).
    15. Norbu, Nyingtob Pema & Tateno, Yusuke & Bolesta, Andrzej, 2021. "Structural transformation and production linkages in Asia-Pacific least developed countries: An input-output analysis," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 510-524.
    16. Yongming Huang & Mohammad Haseeb & Jamal Khan & Md. Emran Hossain, 2023. "Structural changes and economic landscape of the Indian economy: 2000‐2019," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 395-422, February.
    17. repec:uto:dipeco:201432 is not listed on IDEAS
    18. Wlasiuk, Juan Marcos, 2013. "The Mechanics of Real Undervaluation and Growth," MPRA Paper 56628, University Library of Munich, Germany.
    19. repec:wsr:wpaper:y:2015:i:141 is not listed on IDEAS
    20. Kausik Gangopadhyay & Debasis Mondal & Thasni T, 2024. "The Decomposition of Productivity Growth for India: Before and After 1991," IIM Kozhikode Society & Management Review, , vol. 13(1), pages 90-100, January.
    21. Vatthanamixay Chansomphou & Masaru Ichihashi, 2013. "Structural change, labor productivity growth, and convergence of BRIC countries," IDEC DP2 Series 3-5, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
    22. Bloch, Harry & Rafiq, Shuddhasattwa & Salim, Ruhul, 2015. "Economic growth with coal, oil and renewable energy consumption in China: Prospects for fuel substitution," Economic Modelling, Elsevier, vol. 44(C), pages 104-115.
    23. Los, Bart & Timmer, Marcel P. & de Vries, Gaaitzen J., 2015. "How important are exports for job growth in China? A demand side analysis," Journal of Comparative Economics, Elsevier, vol. 43(1), pages 19-32.
    24. Diane Coyle & Jen‐Chung Mei, 2023. "Diagnosing the UK productivity slowdown: which sectors matter and why?," Economica, London School of Economics and Political Science, vol. 90(359), pages 813-850, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:soasur:v:23:y:2016:i:2:p:119-134. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.