ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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State-level Evidence

Analysing the Structural Change and Growth Relationship in India

Examining the link between structural change and growth in India, this study constructs indices of structural change, and performs a panel data analysis using data for India's 16 major states. It finds that there is a one-way positive effect of structural change on growth during the 2000-06 period. This finding emerges when one allows the disturbances to be heteroscedastic, contemporaneously cross-sectionally correlated, and autocorrelated. The results are mostly reinforced when the sample is divided into richer and poorer states.



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