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It was all gonna trickle down: what has growth in India's advanced sectors really done for the rest?

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published
<mark>Journal publication date</mark>01/2010
<mark>Journal</mark>The Indian Economic Journal
Issue number4
Volume57
Number of pages10
Pages (from-to)146-155
Publication StatusPublished
<mark>Original language</mark>English

Abstract

A theory is developed in which the extent to which growth in advanced industrial sectors trickles down to other sectors is dependent upon, capital market frictions, migration, and the strength of inter-industry linkages. It is shown that perverse results can arise, and that the efficacy of any policies that rely on tricke-down is therefore an empirical issue. Using data from India, we investigate whether growth in the advanced sectors generates growth elsewhere in the economy, and find that it does not.