Structural change and economic growth in India: a comparative study of Punjab
| Autor: | Nirvikar Singh, Anirban Sanyal |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Economics and Econometrics
business.industry media_common.quotation_subject Geography Planning and Development Context (language use) Diversification (marketing strategy) Social issues State (polity) Agriculture Development economics Economics Per capita Business and International Management business Lagging Green Revolution Panel data media_common |
| Zdroj: | Indian Growth and Development Review. 15:1-17 |
| ISSN: | 1753-8254 |
| DOI: | 10.1108/igdr-11-2020-0162 |
| Popis: | Purpose The Green Revolution transformed agriculture in the Indian State of Punjab, with positive spillovers to the rest of India, but recently the state’s economy has fallen dramatically in rankings of per capita state output. Understanding the trajectory of Punjab’s economy has important lessons for all of India. Economic development is typically associated with changes in economic structure, but Punjab has remained relatively reliant on agriculture rather than shifting economic activity to manufacturing and services, where productivity growth might be greater. Design/methodology/approach The authors empirically examine structural change in the Punjab economy in the context of structural change and economic growth across the States of India. The authors calculate structural change indices and map their pattern over time. The authors estimate panel regressions and time-varying parameter regressions, as well as performing productivity change decompositions into within-sector and structural changes. Findings Panel regressions and time-varying-coefficient regressions suggest a significant positive influence of structural change on state-level growth. In addition, growth positively affected structural change across India’s states. The relative lack of structural change in Punjab’s economy is implicated in its relatively poor recent growth performance. Comparisons with a handful of other states reinforce this conclusion: Punjab’s lack of economic diversification is a plausible explanation for its lagging economic performance. Originality/value This paper performs a novel empirical analysis of structural change and growth, simultaneously using three different approaches: panel regressions, time-varying parameter regressions and productivity decompositions. To the best of the authors’ knowledge, it is the only paper we are aware of that combines these three approaches. |
| Databáze: | OpenAIRE |
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