IDEAS home Printed from https://ideas.repec.org/a/sae/soueco/v16y2015i1p82-102.html
   My bibliography  Save this article

Inter-sectoral Productivity Differentials in India

Author

Listed:
  • Seema Bathla
  • Alwin D’souza

Abstract

This study estimates the total factor productivity growth across broad economic sectors in India with an aim to explore the possibility of achieving convergence. While analyzing inter-sectoral productivity differentials, it investigates the role of human capital in enhancing productivity and also examines the sources of output growth. Broad findings from 1993–1994 to 2011–2012 indicate large variations in the sectoral employment and output shares, as do the rate of growth in income and capital stock. Productivity has grown in manufacturing and in a few services, but its contribution to growth has increased in almost all the sectors to more than 50 per cent of that of labour and capital. The impact of education is visible, albeit mildly, in augmenting employment and productivity growth. Nevertheless, catching up of agriculture with non-agricultural sectors appears to be remote in the near future. The article highlights a need to accelerate investment and productivity in agriculture, more so in view of large gaps in rural–urban income and poverty.

Suggested Citation

  • Seema Bathla & Alwin D’souza, 2015. "Inter-sectoral Productivity Differentials in India," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 16(1), pages 82-102, March.
    • Handle: RePEc:sae:soueco:v:16:y:2015:i:1:p:82-102
    DOI: 10.1177/1391561415575129
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1391561415575129
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1391561415575129?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. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Bosworth, Barry & Collins, Susan M. & Virmani, Arvind, 2007. "Sources of Growth in the Indian Economy," India Policy Forum, National Council of Applied Economic Research, vol. 3(1), pages 1-69.
    3. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," The World Bank Economic Review, World Bank, vol. 10(1), pages 1-25, January.
    4. Barro, Robert J. & Lee, Jong-Wha, 1994. "Sources of economic growth," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 40(1), pages 1-46, June.
    5. Mr. Garbis Iradian, 2007. "Rapid Growth in Transition Economies: Growth-Accounting Approach," IMF Working Papers 2007/164, International Monetary Fund.
    6. Fan, Shenggen (ed.), 2008. "Public expenditures, growth, and poverty: Lessons from developing countries," IFPRI books, International Food Policy Research Institute (IFPRI), number 978-0-8018-8859-5, October.
    7. Yun-Peng Chu & Hal Hill (ed.), 2006. "The East Asian High-Tech Drive," Books, Edward Elgar Publishing, number 4015.
    8. Nadiri, M Ishaq, 1970. "Some Approaches to the Theory and Measurement of Total Factor Productivity: A Survey," Journal of Economic Literature, American Economic Association, vol. 8(4), pages 1137-1177, December.
    9. Fan, Shenggen, 2008. "Public expenditures, growth, and poverty in developing countries: Lessons from developing countries," Issue briefs 51, International Food Policy Research Institute (IFPRI).
    10. Kanwar, Sunil, 2000. "Does the Dog Wag the Tail or the Tail the Dog? Cointegration of Indian Agriculture with Nonagriculture," Journal of Policy Modeling, Elsevier, vol. 22(5), pages 533-556, September.
    11. Ashra, Sunil, 2003. "The Process of Interactions between Industry and Agriculture in India: Evidence based on a Multivariate Cointegration and Error-Correction Modeling Approach," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 58(4), December.
    12. 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.
    13. Thijs ten Raa & Ronald Schettkat (ed.), 2001. "The Growth of Service Industries," Books, Edward Elgar Publishing, number 2137.
    14. repec:ind:iegddp:70 is not listed on IDEAS
    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. Dorosh, Paul & Thurlow, James, 2014. "Can Cities or Towns Drive African Development? Economywide Analysis for Ethiopia and Uganda," World Development, Elsevier, vol. 63(C), pages 113-123.
    2. Dorosh, Paul & Thurlow, James, 2014. "Can Cities or Towns Drive African Development? Economywide Analysis for Ethiopia and Uganda," World Development, Elsevier, vol. 63(C), pages 113-123.
    3. Mishra, Saurabh & Lundstrom, Susanna & Anand, Rahul, 2011. "Service export sophistication and economic growth," Policy Research Working Paper Series 5606, The World Bank.
    4. Rashid Amjad & Namra Awais, 2016. "Pakistan’s Productivity Performance and TFP Trends, 1980–2015: Cause for Real Concern," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(Special E), pages 33-63, September.
    5. Castelló-Climent, Amparo & Mukhopadhyay, Abhiroop, 2013. "Mass education or a minority well educated elite in the process of growth: The case of India," Journal of Development Economics, Elsevier, vol. 105(C), pages 303-320.
    6. Sudip Ranjan Basu, 2005. "Correlating Growth with Well-Being during Economic Reforms Evidence from India and China," Development and Comp Systems 0509010, University Library of Munich, Germany.
    7. Panagiotis Pegkas & Constantinos Tsamadias, 2017. "Are There Separate Effects of Male and Female Higher Education on Economic Growth? Evidence from Greece," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(1), pages 279-293, March.
    8. Richard Herd & Sean Dougherty, 2007. "Growth Prospects in China and India Compared," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(1), pages 65-89, June.
    9. Christoph Meister & Bart Verspagen & Guntram B. Wolff, 2006. "European Productivity Gaps: Is R&D the Solution?," Chapters, in: Susanne Mundschenk & Michael H. Stierle & Ulrike Stierle-von Schütz & Iulia Traistaru-Siedschlag (ed.), Competitiveness and Growth in Europe, chapter 8, Edward Elgar Publishing.
    10. Ajit K. Ghose, 2021. "Structural Change and Development in India," Indian Journal of Human Development, , vol. 15(1), pages 7-29, April.
    11. Sarath Delpachitra & Pham Van Dai, 2012. "The Determinants of TFP Growth in Middle Income Economies in ASEAN: Implication of Financial Crises," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 11(1), pages 63-88, June.
    12. Turnovsky, S., 2000. "Growth in an Open Economy: some Recent Developments," Papers 5, Warwick - Development Economics Research Centre.
    13. repec:kqi:journl:2018-2-1-2 is not listed on IDEAS
    14. Arne Bigsten & Jörgen Levin, 2001. "Growth, Income Distribution, and Poverty," WIDER Working Paper Series DP2001-129, World Institute for Development Economic Research (UNU-WIDER).
    15. Günther Rehme, 2011. "Endogenous Policy And Cross‐Country Growth Empirics," Scottish Journal of Political Economy, Scottish Economic Society, vol. 58(2), pages 262-296, May.
    16. Charles R. Hulten, 2000. "Total Factor Productivity: A Short Biography," NBER Working Papers 7471, National Bureau of Economic Research, Inc.
    17. Darius Tirtosuharto, 2022. "The impact of fiscal efficiency on poverty reduction in Indonesia: institutional factor and geographical differences," Journal of Geographical Systems, Springer, vol. 24(1), pages 67-93, January.
    18. Altug, Sumru & Filiztekin, Alpay & Pamuk, Şevket, 2008. "Sources of long-term economic growth for Turkey, 1880–2005," European Review of Economic History, Cambridge University Press, vol. 12(3), pages 393-430, December.
    19. Raghav Gaiha & Katsushi S. Imai & Ganesh Thapa & Woojin Kang, 2009. "Fiscal Stimulus, Agricultural Growth and Poverty in Asia and the Pacific Region: Evidence from Panel Data," Economics Discussion Paper Series 0919, Economics, The University of Manchester.
    20. Rob Vos, 2018. "Agricultural and rural transformations in Asian development," WIDER Working Paper Series 87, World Institute for Development Economic Research (UNU-WIDER).
    21. Morvillier, Florian, 2020. "Do currency undervaluations affect the impact of inflation on growth?," Economic Modelling, Elsevier, vol. 84(C), pages 275-292.

    More about this item

    Keywords

    Structural transformation; convergence; physical and human capital; total factor productivity growth; poverty;
    All these keywords.

    JEL classification:

    • Q19 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Other
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    Statistics

    Access and download statistics

    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:soueco:v:16:y:2015:i:1:p:82-102. 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: http://www.ips.lk/ .

    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.