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It Was All Gonna Trickle Down: What Has Growth In India''s Advanced Sectors Really Done For The Rest?

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  • G Johnes

Abstract

A theory is developed in which the extent to which growth in advanced industrial sectors trickles down to other sectors is dependent upon, capital market frictions, migration, and the strength of interindustry linkages. It is shown that perverse results can arise, and that the efficacy of any policies that rely on tricke down is therefore an empirical issue. Using data from India, we investigate whether growth in the advanced sectors generates growth elsewhere in the economy, and find that it does not.

Suggested Citation

  • G Johnes, 2009. "It Was All Gonna Trickle Down: What Has Growth In India''s Advanced Sectors Really Done For The Rest?," Working Papers 601653, Lancaster University Management School, Economics Department.
    • Handle: RePEc:lan:wpaper:601653
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    File URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/GrowthIndia.pdf
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    References listed on IDEAS

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    1. Arndt, H W, 1983. "The "Trickle-Down" Myth," Economic Development and Cultural Change, University of Chicago Press, vol. 32(1), pages 1-10, October.
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