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Structural Change and Growth in India

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  • Singh, Nirvikar
  • Cortuk, Orcan

Abstract

This paper examines the link between structural change and growth in India. It constructs indices of structural change, and performs a time series analysis of the data. It finds that 1988 marks a break in the time series of growth and structural change. There is one-way causality from structural change to growth in the period 1988-2007, whereas there is no evidence for this linkage before 1988.

Suggested Citation

  • Singh, Nirvikar & Cortuk, Orcan, 2010. "Structural Change and Growth in India," MPRA Paper 20867, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:20867
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    References listed on IDEAS

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    1. Kochhar, Kalpana & Kumar, Utsav & Rajan, Raghuram & Subramanian, Arvind & Tokatlidis, Ioannis, 2006. "India's pattern of development: What happened, what follows?," Journal of Monetary Economics, Elsevier, vol. 53(5), pages 981-1019, July.
    2. Panagariya, Arvind, 2011. "India: The Emerging Giant," OUP Catalogue, Oxford University Press, number 9780199751563.
    3. Mohamed Safouane Ben Aissa & Mohamed Boutahar & Jamel Jouini, 2004. "Bai and Perron's and spectral density methods for structural change detection in the US inflation process," Applied Economics Letters, Taylor & Francis Journals, vol. 11(2), pages 109-115.
    4. Dani Rodrik & Arvind Subramanian, 2005. "From "Hindu Growth" to Productivity Surge: The Mystery of the Indian Growth Transition," IMF Staff Papers, Palgrave Macmillan, vol. 52(2), pages 193-228, September.
    5. Andreas Dietrich, 2012. "Does growth cause structural change, or is it the other way around? A dynamic panel data analysis for seven OECD countries," Empirical Economics, Springer, vol. 43(3), pages 915-944, December.
    6. Lilien, David M, 1982. "Sectoral Shifts and Cyclical Unemployment," Journal of Political Economy, University of Chicago Press, vol. 90(4), pages 777-793, August.
    7. Bruce E. Hansen, 2001. "The New Econometrics of Structural Change: Dating Breaks in U.S. Labour Productivity," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 117-128, Fall.
    8. Singh, Nirvikar, 2006. "Services-Led Industrialization in India: Assessment and Lessons," Santa Cruz Department of Economics, Working Paper Series qt8jn2b8z6, Department of Economics, UC Santa Cruz.
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    Cited by:

    1. Gitana Dudzevičiūtė & Gitana Dudzevičiūtė, 2013. "Lithuanian manufacturing trends in the context of developed and developing countries," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 1(1), pages 55-66, September.
    2. Manas Ranjan Bhowmik & Saswata Guha Thakurata & Debolina Biswas, 2020. "Economic Growth and Rural Crisis in India: Imagining Cooperatives as a Viable Solution," Agrarian South: Journal of Political Economy, Centre for Agrarian Research and Education for South, vol. 9(2), pages 228-254, August.
    3. Magdalena Olczyk & Aleksandra Kordalska, 2018. "Growth And Structural Changes In Transition Countries – The Chicken Or The Egg?," GUT FME Working Paper Series A 49, Faculty of Management and Economics, Gdansk University of Technology.
    4. Monica Thind & Lakhwinder Singh, 2018. "Structural Change and Economic Growth across Major States of India," Millennial Asia, , vol. 9(2), pages 162-182, August.
    5. Gitana Dudzevičiūtė, 2013. "Lithuanian manufacturing trends in the context of developed and developing countries," Post-Print hal-01694317, HAL.
    6. Mehta, N., 2015. "Changing Inter-Sectoral Linkages: Role of Technology Adoption in Agricultural Growth," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 28(Conferenc).
    7. 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.
    8. R. Rijesh, 2023. "Economic Liberalisation, Structural Change and Productivity Growth in Indian Organised Manufacturing Sector, 1991–2016," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(1), pages 131-154, March.
    9. Seck, Gondia Sokhna & Guerassimoff, Gilles & Maïzi, Nadia, 2016. "Analysis of the importance of structural change in non-energy intensive industry for prospective modelling: The French case," Energy Policy, Elsevier, vol. 89(C), pages 114-124.
    10. 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.
    11. Sèna Kimm Gnangnon, 2020. "Comparative Advantage Following (CAF) development strategy, Aid for Trade flows and structural change in production," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-29, December.
    12. Sèna Kimm Gnangnon, 2019. "Trade Policy Space and Production Diversification in Developed and Developing Countries," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 10(02), pages 1-39, June.
    13. Zivanemoyo Chinzara & Radhika Lahiri & En Te Chen, 2017. "Financial liberalization and sectoral reallocation of capital in South Africa," Empirical Economics, Springer, vol. 52(1), pages 309-356, February.
    14. Cortuk, O & Singh, N, 2015. "Analysing the structural change and growth relationship in India," Santa Cruz Department of Economics, Working Paper Series qt4qx907p3, Department of Economics, UC Santa Cruz.
    15. Qingjie Liu & Biliang Hu, 2019. "A Study on the Two-way Causal Relationship Between Industrial Structure Evolution and Economic Growth: Empirical Test Based on 40 Years of Reform and Opening-up in China," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 11(1-2), pages 98-118, January.

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    More about this item

    Keywords

    Indian economy; structural change; growth; causality;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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