Date of Submission


Date of Award


Institute Name (Publisher)

Indian Statistical Institute

Document Type

Doctoral Thesis

Degree Name

Doctor of Philosophy

Subject Name

Quantitative Economics


Economic Research Unit (ERU-Kolkata)


Maity, Pradip (ERU-Kolkata; ISI)

Abstract (Summary of the Work)

The primary goal of economic development is to achieve high rates of growth of outputs and incomes so to ensure high per as capita income and levels of living in the economy. In India, this was sought to be achleved, to a large extent, through a rapid expansion and growth of the industrial sector, as is evident in the emphasis placed on the industrialisation programmes in her various Five Year Plans. However, the growth of this sector has exhibited considerable ups and downs over the years, belying expectations. Quite expectedly, this has evoked substantial debate on the factors influencing and/or constraining industrial growth in India. This debate has acquired added dimension against the background of the new economic policies of Liberalization and privatization being advocated and pursued by the government recently. The fact that the issues raised in this debate have not yet been resolved makes further investigations in this area necessary and worthwhile. The present study is an attempt in this direction. the present study is to analyse industrial growth in India over the In particular, the purpose of last four decades and to explain econometrically the observed growth at a slightly disaggregate level.Given the professed goals of development, the process of economic development and constraints to such a process have been the subject of intensive study for a long time. While the availability of investible resources has consistently been viewed as a constraint to the expansion of capacity and output, the lack of profitable venues to invest in a developing economy has come to be recognized as another constraining factor. The Nurksian theory of low level equilibrium trap suggested that in such economies the endogenous markets and other economic conditions fail to generate sufficient investible resources and/or to provide profitable investment opportunitles. This brought into the picture the big-push theories and the idea of balanced and unbalanced growth. All these theories called for a step up In investment in the economy, such a step up not necessarily being motivated by the existing market conditions. These theories thus assigned a prominent role to be played by the public sector in the growth of such economies.Further progress in development economics with the came recognition that underdeveloped economies are generally characterised by certain structural rigidites like the existence of imperfections in market conditions, prevalence of traditional production methods, low levels of productivity etc. Such a recognition got crystallised into the notion of a "dual economy, 1. e., an economy consisting of two distinct sectors or sub-economies, so to say - a modern sector and a traditional sector which differ from each other in the forms of organisation of prodution, the levels of technology used, the extent of orientation towards the market, etc. . The term dual economy, coined by Sir Arthur Lewis, was used to describe an economy in transition from a traditional or backward state to a modern or an advanced state. A number of models have emerged which sought to capture a wide variety of such rigidities in a dual economy set-up. The traditional sector in such economies is usually identified as agriculture while industry is referred to as the modern sector. Economic development, therefore, gets identified as a process of transformation of a predominantly agrarian economy into an industrial or modern economy. Clearly, rapld growth of the industrial sector is of prime concern in such models, and these models, therefore, seek to identify the various constraints to industrial growth.


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Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.


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