From 'Hindu Growth' to Productivity Surge: The Mystery of the Indian Growth Transition

48 Pages Posted: 21 May 2004

See all articles by Dani Rodrik

Dani Rodrik

Harvard University - Harvard Kennedy School (HKS); Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Arvind Subramanian

International Monetary Fund (IMF); Center for Global Development

Multiple version iconThere are 2 versions of this paper

Date Written: April 2004

Abstract

Most conventional accounts of India's recent economic performance associate the pick-up in economic growth with the liberalization of 1991. This Paper demonstrates that the transition to high growth occurred around 1980, a full decade before economic liberalization. We investigate a number of hypotheses about the causes of this growth - favourable external environment, fiscal stimulus, trade liberalization, internal liberalization, the green revolution, public investment - and find them wanting. We argue that growth was triggered by an attitudinal shift on the part of the national government towards a pro-business (as opposed to pro-liberalization) approach. We provide some evidence that is consistent with this argument.

Keywords: India, economic growth, liberalization

JEL Classification: O40, O50

Suggested Citation

Rodrik, Dani and Subramanian, Arvind, From 'Hindu Growth' to Productivity Surge: The Mystery of the Indian Growth Transition (April 2004). CEPR Discussion Paper No. 4371. Available at SSRN: https://ssrn.com/abstract=549201

Dani Rodrik (Contact Author)

Harvard University - Harvard Kennedy School (HKS) ( email )

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HOME PAGE: http://www.ksg.harvard.edu/rodrik/

Centre for Economic Policy Research (CEPR)

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United Kingdom

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
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Arvind Subramanian

International Monetary Fund (IMF) ( email )

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Washington, DC 20431
United States

Center for Global Development

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5th floor
Washington, DC 20036
United States

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