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An alternative Indian model?

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  • Grabowski, Richard
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    Abstract

    This paper utilizes the dualistic model of development to analyze the development of three regions: Northeast Asia, China, and India. There are many similarities between the development processes experienced by the first two regions. They involved rapid agricultural growth as a foundation for the growth of labor-intensive manufacturing. However, India's growth process seems to have skipped over the stage of labor-intensive manufacturing growth. Switching to a more labor-intensive growth process is often seen to be dependent on reform of India's labor laws. This paper argues that such reform will not work. The labor intensity of the growth process is dependent on rapid growth in agriculture. Without this, structural change will slow and inequality worsen. The latter will likely result in a deterioration of state effectiveness.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Asian Economics.

    Volume (Year): 20 (2009)
    Issue (Month): 1 (January)
    Pages: 50-61

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    Handle: RePEc:eee:asieco:v:20:y:2009:i:1:p:50-61

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    Web page: http://www.elsevier.com/locate/asieco

    Related research

    Keywords: India Labor intensity Agricultural productivity Dualism;

    References

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    1. Jing Jun Chang & Been-Lon Chen & Mei Hsu, 2006. "Agricultural Productivity and Economic Growth: Role of Tax Revenues and Infrastructures," Southern Economic Journal, Southern Economic Association, vol. 72(4), pages 891–914, April.
    2. Shujie Yao, 2000. "How Important is Agriculture in China's Economic Growth?," Oxford Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 28(1), pages 33-49.
    3. Kiminori Matsuyama, 1990. "Agricultural Productivity, Comparative Advantage, and Economic Growth," Discussion Papers, Northwestern University, Center for Mathematical Studies in Economics and Management Science 934, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    4. Shenggen Fan & Ashok Gulati & Sukhadeo Thorat, 2008. "Investment, subsidies, and pro-poor growth in rural India," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 163-170, 09.
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    8. Fan, Shenggen & Chan-Kang, Connie & Mukherjee, Anit, 2005. "Rural and urban dynamics and poverty: Evidence from China and India," FCND discussion papers, International Food Policy Research Institute (IFPRI) 196, International Food Policy Research Institute (IFPRI).
    9. Lall, Sanjaya & Albaladejo, Manuel, 2004. "China's Competitive Performance: A Threat to East Asian Manufactured Exports?," World Development, Elsevier, Elsevier, vol. 32(9), pages 1441-1466, September.
    10. Kalirajan, K. P. & Sankar, U., 2001. "Agriculture in India's economic reform program," Journal of Asian Economics, Elsevier, Elsevier, vol. 12(3), pages 383-399.
    11. von Braun, Joachim & Gulati, Ashok & Fan, Shenggen, 2005. "Agricultural and economic development strategies and the transformation of China and India:," Annual report essays 2005EssayEN, International Food Policy Research Institute (IFPRI).
    12. Shashanka Bhide & Rajesh Chadha & Kaliappa Kalirajan, 2005. "Growth interdependence among Indian states: an exploration," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 12(2), pages 59-80, December.
    13. Hayami, Yujiro & Ruttan, V W, 1970. "Korean Rice, Taiwan Rice, and Japanese Agricultural Stagnation: An Economic Consequence of Colonialism," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 84(4), pages 562-89, November.
    14. William Easterly & Jozef Ritzan & Michael Woolcock, 2006. "Social Cohesion, Institutions, and Growth," Working Papers, Center for Global Development 94, Center for Global Development.
    15. Chaudhuri, Shubham & Ravallion, Martin, 2006. "Partially awakened giants : uneven growth in China and India," Policy Research Working Paper Series 4069, The World Bank.
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