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It Was All Gonna Trickle Down: What Has Growth In India''s Advanced Sectors Really Done For The Rest?

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Author Info
Geraint Johnes
Abstract

A theory is developed in which the extent to which growth in advanced industrial sectors trickles down to other sectors is dependent upon, capital market frictions, migration, and the strength of interindustry linkages. It is shown that perverse results can arise, and that the efficacy of any policies that rely on tricke down is therefore an empirical issue. Using data from India, we investigate whether growth in the advanced sectors generates growth elsewhere in the economy, and find that it does not.

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Paper provided by Lancaster University Management School, Economics Department in its series Working Papers with number 006104.

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Date of creation: 2009
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Handle: RePEc:lan:wpaper:006104

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Keywords: growth; development;

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  1. Arndt, H W, 1983. "The "Trickle-Down" Myth," Economic Development and Cultural Change, University of Chicago Press, vol. 32(1), pages 1-10, October.
  2. ANDREW G. MUDE & CHRISTOPHER B. BARRETT & JOHN G. McPEAK & CHERYL R. DOSS, 2007. "Educational Investments in a Dual Economy," Economica, London School of Economics and Political Science, vol. 74(294), pages 351-369, 05. [Downloadable!] (restricted)
  3. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254. [Downloadable!] (restricted)
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This page was last updated on 2009-12-8.

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