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Services Growth in India: A Look Inside the Black Box

Dehejia, Rajeev; Panagariya, Arvind

It is now widely recognized that the pattern of growth in India in recent years has
been an unconventional one. Virtually all labor-abundant developing countries such as Taiwan, South Korea and China saw the shares of labor-intensive manufacturing in the GDP and employment rise and those of agriculture fall during their high-growth phases. In contrast, during its recent high-growth phase, India has witnessed the share of labor-intensive manufacturing in the GDP stagnate despite a declining share of agriculture. Moreover, the movement of workers out of agriculture has been extremely piecemeal, with shifts in the relative employment shares barely visible.

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More About This Work

Academic Units
Program on Indian Economic Policies
School of International and Public Affairs, Columbia University
Program on Indian Economic Policies Working Papers, 2010-4
Published Here
August 3, 2011
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