ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

A+| A| A-

Economic Growth

Mudunuri Bharathi (‘Lack of Linkages’, December 8, 2007) is wrong to infer from our study that “…the sectors in the Indian economy with a sublime lack of interdependence may be performing as three unrelated engines.” Actually, our time-series econometric estimates bear out a recursive structure, with secondary sector growth being determined by tertiary sector growth and the latter being in turn determined by growth of the primary sector, with most of the sectors demonstrating an autoregressive element in addition. These were reported in a table (Table 4) titled ‘Inter-Sectoral Growth Relations’! Moreover, this pattern is consistent with the sequence of growth transitions identied by us (reported in Table 1). Admittedly, the implied story is a broad-brush account, and based on an undifferentiated model addressed to 50 years’ experience. However, the explanation of growth over half a century was not part of our twofold objective in the article. This was, to rst date the growth transition in the Indian economy using an econometric procedure that excludes the inuence of the researcher’s priors. Secondly, we had sought the contribution of each sector to the change in the aggregate growth rate. These objectives were chosen to provide the building blocks essential to an understanding of economic growth in India, notably the relationship of growth to the accompanying economic-policy regime. For this reason, the paper had been sub-titled ‘A Prerequisite’.We believe that we have successfully accomplished the task we had set for ourselves. Any advancement of the project of understanding economic growth in India would be welcome to us, but it is not served by the assertion that we do not describe the intersectoral linkages in the economy.

Pulapre Balakrishnan, M Parameswaran

Dear Reader,

To continue reading, become a subscriber.

Explore our attractive subscription offers.

Click here

Or

To gain instant access to this article (download).


Pay
INR 59

(Readers in India)


Pay
$ 6

(Readers outside India)

Support Us

Your Support will ensure EPW’s financial viability and sustainability.

The EPW produces independent and public-spirited scholarship and analyses of contemporary affairs every week. EPW is one of the few publications that keep alive the spirit of intellectual inquiry in the Indian media.

Often described as a publication with a “social conscience,” EPW has never shied away from taking strong editorial positions. Our publication is free from political pressure, or commercial interests. Our editorial independence is our pride.

We rely on your support to continue the endeavour of highlighting the challenges faced by the disadvantaged, writings from the margins, and scholarship on the most pertinent issues that concern contemporary Indian society.

Every contribution is valuable for our future.