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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)


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.

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Bibliographic Info

Paper provided by Centre for Development Studies, Trivendrum, India in its series Centre for Development Studies, Trivendrum Working Papers with number 371.

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Length: 71 pages
Date of creation: Jun 2005
Date of revision:
Handle: RePEc:ind:cdswpp:371

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Keywords: Rural industry; production organisation; linearity model; transaction cost;

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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 426-29, May.
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Cited by:
  1. 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.
  2. Vinoj Abraham & K.J. Joseph, 2008. "Information Technology and Productivity: Evidence From India's Manufacturing Sector," Working Papers id:1418, eSocialSciences.
  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. 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.
  5. Hrushikesh Mallick, 2007. "Does energy consumption fuel economic growth in India?," Centre for Development Studies, Trivendrum Working Papers 388, Centre for Development Studies, Trivendrum, India.
  6. Hrushikesh Mallick, 2007. "Does Energy Consumption Fuel Economic Growth In India?," Working Papers id:1299, eSocialSciences.
  7. 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.
  8. 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.
  9. Nandana Baruah, 2006. "Antidumping Duties as a Measure of Contingent Protection: an Analysis of Indian Experience," Working Papers id:526, eSocialSciences.
  10. Govindan Parayil & K.J. Joseph, 2006. "Trade Liberalisation and Digital Divide: an Analysis of the Information Technology Agreement of WTO," Working Papers id:583, eSocialSciences.
  11. 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.
  12. 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.
  13. J Devika, 2007. "‘A People United In Development’: Developmentalism In Modern Malayalee Identity," Working Papers id:1260, eSocialSciences.
  14. P. Mohanan Pillai & N. Shanta, 2010. "Long Term Trends in the Growth and Structure of the Net State Domestic Product in Kerala," Working Papers id:2996, eSocialSciences.
  15. Pulapre Balakrishnan, 2008. "Visible Hand: Public Policy nd Economic Growth in the Nehru Era," Working Papers id:1355, eSocialSciences.
  16. K.N. Nair & R Ramakumar, 2008. "Agrarian Distress and Rural Livelihoods A Study in Upputhara Panchayat Idukki District, Kerala," Working Papers id:1321, eSocialSciences.
  17. R. Mohan, 2010. "Taxing Powers and Developmental Role of the Indian States: A Study with Reference to Kerala," Working Papers id:2997, eSocialSciences.
  18. 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.


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