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Will Services be the New Engine of Indian Economic Growth?
Author(s) -
Dasgupta Sukti,
Singh Ajit
Publication year - 2005
Publication title -
development and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.267
H-Index - 93
eISSN - 1467-7660
pISSN - 0012-155X
DOI - 10.1111/j.0012-155x.2005.00449.x
Subject(s) - industrialisation , developing country , context (archaeology) , per capita income , economics , manufacturing sector , per capita , development economics , economic sector , economic expansion , economic growth , business , economic policy , international economics , economy , macroeconomics , market economy , geography , archaeology , sociology , population , demography
This article revisits the role of manufacturing and services in economic development in the light of a number of new phenomena: a faster growth of services than of manufacturing in many developing countries; the emergence of ‘de‐industrialization’ in several developing countries, at low levels of per capita income; jobless growth in the formal sector, even in fast‐growing countries such as India; and a large expansion of the informal sector in developing countries. Although this article examines these phenomena in the specific context of the Indian economy, the analysis has much wider application and implications, both for economic policy and for theories of growth and structural change.