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Organisational morphology of rural industries in liberalised India: A study of West Bengal

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  • Dibyendu S. Maiti

    (Centre for Development Studies)

Abstract

Recent interest on rural industries derives from recognition of thelimits of agriculture and organised manufacturing sector in employment generation especially during the post-liberalisation period in India. Historically, industrial development of the West and the East presentcontrasting pictures of rural industries. One, the linearity model foundedon the historical experience of the West, holds that development impliesa movement away from traditional subsistence production in rural areas to modern industrial production in urban centres. The other, the EastAsian Experience has shown that the growth potential of rural industriesis considerable given the under-utilisation of the physical labour and the entrepreneurial ability of rural people. A combination of putting out system and subcontracting system - along with modern factory and industrial cooperatives - has persisted in the rural manufacturing sector even in the era of economic liberalisation. We find differential capital endowments and socio-economic constraints of rural artisans reflecting extensive division of labour, specialisation and fragmentation of the labour process. These do not satisfy the requirements of the linearity model founded in advanced capitalist countries.

Suggested Citation

  • Dibyendu S. Maiti, 2005. "Organisational morphology of rural industries in liberalised India: A study of West Bengal," Centre for Development Studies, Trivendrum Working Papers 371, Centre for Development Studies, Trivendrum, India.
    • Handle: RePEc:ind:cdswpp:371
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    1. Demsetz, Harold, 1997. "The Firm in Economic Theory: A Quiet Revolution," American Economic Review, American Economic Association, vol. 87(2), pages 426-429, May.
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    Cited by:

    1. Hrushikesh Mallick, 2007. "Does Energy Consumption Fuel Economic Growth In India?," Working Papers id:1299, eSocialSciences.
    2. M. Parameswaran, 2007. "International trade, R & D spillovers and productivity: Evidence from Indian manufacturing industry," Centre for Development Studies, Trivendrum Working Papers 385, Centre for Development Studies, Trivendrum, India.
    3. D. Shyjan, 2007. "Public investment and agricultural productivity: A State-wise analysis of foodgrains in India," Centre for Development Studies, Trivendrum Working Papers 387, Centre for Development Studies, Trivendrum, India.
    4. P. Mohanan Pillai & N. Shanta, 2005. "Long term trends in the growth and structure of the net state domestic product in Kerala," Centre for Development Studies, Trivendrum Working Papers 376, Centre for Development Studies, Trivendrum, India.
    5. J. Devika, 2007. "A People united in development: Developmentalism in modern Malayalee identity," Centre for Development Studies, Trivendrum Working Papers 386, Centre for Development Studies, Trivendrum, India.
    6. R. Mohan, 2010. "Taxing Powers and Developmental Role of the Indian States: A Study with Reference to Kerala," Working Papers id:2997, eSocialSciences.
    7. K.N. Nair & R. Ramakumar, 2007. "Agrarian distress and rural livelihoods: A Study in Upputhara panchayat Idukki district, Kerala," Centre for Development Studies, Trivendrum Working Papers 392, Centre for Development Studies, Trivendrum, India.
    8. K.N. Nair, 2008. "Agrarian Distress and Rural Livelihoods A Study in Upputhara Panchayat Idukki District, Kerala," Working Papers id:1321, eSocialSciences.
    9. K.J Joseph & Vinoj Abraham, 2007. "Information technology and productivity: Evidence from India's manufacturing sector," Centre for Development Studies, Trivendrum Working Papers 389, Centre for Development Studies, Trivendrum, India.
    10. Sunil Mani, 2007. "The Growth Performance Of India’s Telecommunications Services Industry, 1991-2006. Can It Lead To The Emergence of a Domestic Manufacturing Hub?," Working Papers id:1279, eSocialSciences.
    11. Sunil Mani, 2007. "The Growth performance of India's telecommunication serivices industry, 1991-2006: Can it lead to the emergence of a domestic manufacturing hub?," Centre for Development Studies, Trivendrum Working Papers 390, Centre for Development Studies, Trivendrum, India.
    12. J Devika, 2007. "‘A People United In Development’: Developmentalism In Modern Malayalee Identity," Working Papers id:1260, eSocialSciences.
    13. Pulapre Balakrishnan, 2007. "Visible hand: Public policy and economic growth in the Nehru era," Centre for Development Studies, Trivendrum Working Papers 391, Centre for Development Studies, Trivendrum, India.
    14. KC.Zachariah & S.Irudaya Rajan, 2007. "Economic and social dynamics of migration in Kerala, 1999-2004: Analysis of panel data," Centre for Development Studies, Trivendrum Working Papers 384, Centre for Development Studies, Trivendrum, India.
    15. Nandana Baruah, 2006. "Antidumping Duties as a Measure of Contingent Protection: an Analysis of Indian Experience," Working Papers id:526, eSocialSciences.
    16. K.J. Joseph & Govinda Parayil, 2006. "Trade liberalization and digital divide: An Analysis of the information technology agreement of WTO," Centre for Development Studies, Trivendrum Working Papers 381, Centre for Development Studies, Trivendrum, India.
    17. Rudra Narayan Mishra, 2006. "Dynamics of caste-based deprivation in child under-nutrition in India," Centre for Development Studies, Trivendrum Working Papers 380, Centre for Development Studies, Trivendrum, India.

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    More about this item

    Keywords

    Rural industry; production organisation; linearity model; transaction cost;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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