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Economic Growth and Structural Change: The Case of India

In: The Cultural Basis of Economic Growth in India

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  • Kazuo Mino

    (Institute of Economic Research, Kyoto University)

Abstract

Structural transformation of the Indian economy has two distinctive features: (i) the employment share of the agricultural sector has not declined much, although its income share has been rapidly decreasing with economic growth and; (ii) the service sector started expanding before the income share of the manufacturing sector has not increased enough. In this chapter, we mainly focus on the first feature by examining a two-sector development model with labor market frictions. Our model exhibits an unbalanced decline in the employment and income shares of the agricultural sector.

Suggested Citation

  • Kazuo Mino, 2022. "Economic Growth and Structural Change: The Case of India," Creative Economy, in: Kazuo Mino & Tadashi Yagi (ed.), The Cultural Basis of Economic Growth in India, chapter 0, pages 29-63, Springer.
    • Handle: RePEc:spr:crechp:978-981-15-9305-5_2
    DOI: 10.1007/978-981-15-9305-5_2
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