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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: Working paper


Publication date2009
Place of publicationLancaster University
PublisherThe Department of Economics
<mark>Original language</mark>English

Publication series

NameEconomics Working Paper Series


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 interindustry 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.