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Economic reforms, technological intensity and industrial development in India

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  • Mehta, Swati

Abstract

The impact of the 1991 reforms on the Indian manufacturing sector has been a subject of much debate. The reforms were expected to result in a high growth rate coupled with a structural change towards high technology industries. This paper analyses data on 60 three-digit industries, reclassified into four technology-intensive subgroups, for the period 1980-81 to 2005-06. Dividing this period into the pre-reform (1980-81 to 1991-92) and the post-reform (1992-93 to 2005-06), the paper uses the single kinked model to reveal a slower trend growth rate of value added for about 77% of the industries in the post-reform period. Further, the study does not find any significant structural transformations within the organised manufacturing sector, which is still dominated by relatively low technology industries. The results thus refute the neo-liberal optimism regarding reforms. In an increasingly technology-driven world, promoting industrialisation is a multidimensional complex task that requires a constructive role of the government.

Suggested Citation

  • Mehta, Swati, 2011. "Economic reforms, technological intensity and industrial development in India," MPRA Paper 41494, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:41494
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    References listed on IDEAS

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    1. Charles Edquist & Leif Hommen & Maureen McKelvey, 2001. "Innovation and Employment," Books, Edward Elgar Publishing, number 2138.
    2. Mario Cimoli & Giovanni Dosi & Joseph E. Stiglitz, 2008. "The Political Economy of Capabilities Accumulation: the Past and Future of Policies for Industrial Development. A Preface," LEM Papers Series 2008/15, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Cimoli, Mario & Dosi, Giovanni & Stiglitz, Joseph E. (ed.), 2009. "Industrial Policy and Development: The Political Economy of Capabilities Accumulation," OUP Catalogue, Oxford University Press, number 9780199235278.
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    Cited by:

    1. Kawaljeet Kaur & Swati Mehta, 2023. "Modes of Technology Accumulation, Total Factor Productivity and Indian Manufacturing Sector: Firm-Level Analysis," Journal of South Asian Development, , vol. 18(1), pages 7-43, April.
    2. Swati Mehta, 2018. "National Innovation System of India: An Empirical Analysis," Millennial Asia, , vol. 9(2), pages 203-224, August.
    3. Swati Mehta, 2014. "Strategies of Technology Accumulation by Indian Pharmaceutical Firms: A Multinomial Logit Analysis," Millennial Asia, , vol. 5(1), pages 67-87, April.

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    More about this item

    Keywords

    Economic Reforms; Technological Intensity;

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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