An Analysis of Sources of Growth in the Indian Economy

38 Pages Posted: 18 Dec 2015

See all articles by Anjali Tandon

Anjali Tandon

National Council of Applied Economic Research

Shahid Ahmed

Jamia Millia Islamia (A Central University) - Economics

Date Written: March 2013

Abstract

This paper attempts to analyze sources of output growth in the Indian economy using Input-Output based Structural Decomposition Analysis over the period 1993-4 to 2003-4. The decomposition results show that overall output expansion of the economy was primarily driven by increase in domestic demand followed by export expansion. At the aggregate level, import liberalization contributed to output expansion. Contribution of improved technology is realized through changes in input-output coefficients and has been rather limited. It can be said that easier and cheaper access to better quality imports, had a rather limited technological change at an aggregate level. However, the relationship between the two sources varied at sector level.

Keywords: Input-Output, structural decomposition analysis, sources of growth

JEL Classification: C67, D57

Suggested Citation

Tandon, Anjali and Ahmed, Shahid, An Analysis of Sources of Growth in the Indian Economy (March 2013). Available at SSRN: https://ssrn.com/abstract=2705296 or http://dx.doi.org/10.2139/ssrn.2705296

Anjali Tandon (Contact Author)

National Council of Applied Economic Research ( email )

Parisila Bhawan
11 - Indraprastha Estate
New Delhi, 110002
India

Shahid Ahmed

Jamia Millia Islamia (A Central University) - Economics ( email )

Jamia Nagar
New Delhi, 110025
India

HOME PAGE: http://jmi.ac.in/economics/faculty-members/Prof_Shahid_Ahmed-1783

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