Advanced Search
MyIDEAS: Login to save this paper or follow this series

Trends and Patterns of Private Investment in India

Contents:

Author Info

  • Jagannath Mallick

    (Institute for Social and Economic Change)

Registered author(s):

    Abstract

    This study aims at providing an understanding of the economic structure and structural changes in private investment in the Indian economy. The overarching problem addressed in this study is whether or not identifiable structural transformation has occurred due to economic reforms in India. What were the trends in private investment in India? Structural transformation is confined to the shifting or movement of resources from one sector to another within the private economy. This study utilised descriptive statistics like annual average growth rate, share and Z test statistics to find out the sectoral and sub-sectoral contributions to the growth of private investment in India as well as to verify the structural changes. The research questions addressed were: What were the short term and long term trends in private investment at the aggregate, sectoral and sub-sectoral levels? What was the contribution of the sectors and their sub-sectors to the growth of private investment in India before and after the reforms? Did an identifiable structural transformation occur in the Indian economy? The National Accounts Statistics (NAS) was used for the data on private investment for the analysis of this study. The analysis revealed that the rate of capital formation had increased in the private sector and decreased in the public sector after economic reforms. Further, the industrial sector had been ranked one in terms of its contribution to the growth of private investment followed by the service and agricultural sectors in India in the short term as well as long term. However, the growth of private investment in the service sector was considerably higher in the post reform period than the pre-reform period. Further, the annual average of growth of private investment in the service sector was almost equal to the industrial secto in the post-reform period. Therefore, the service sector played a very important role in attracting private investment during the economic reforms period. The service sector comprises, among others, consumer and producer services. Further, it was found that the contribution of producer services, which includes real estate, ownership of dwellings and business services, and others, contributed to the growth of private investment in the service sector in India. In this context it is very important to study whether or not identifiable structural transformations in terms of private investment occurred in India.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.isec.ac.in/WP%20226%20-%20Jagannath%20Mallick.pdf
    Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify (B B Chand)
    Download Restriction: no

    Bibliographic Info

    Paper provided by Institute for Social and Economic Change, Bangalore in its series Working Papers with number 226.

    as in new window
    Length: 24 pages
    Date of creation: 2009
    Date of revision:
    Handle: RePEc:sch:wpaper:226

    Contact details of provider:
    Postal: Nagarabhavi, Bangalore - 560072
    Phone: +91-80-23215468
    Fax: +91-80-23217008
    Email:
    Web page: http://www.isec.ac.in/
    More information through EDIRC

    Related research

    Keywords: Private investment; Structural transformation;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Mario I. Blejer & Mohsin S. Khan, 1984. "Government Policy and Private Investment in Developing Countries (Politique des pouvoirs publics et investissement privé dans les pays en développement) (Política estatal e inversión priva," IMF Staff Papers, Palgrave Macmillan, vol. 31(2), pages 379-403, June.
    2. Reinhart, Carmen & Khan, Mohsin, 1989. "Private investment and economic growth in developing countries," MPRA Paper 13655, University Library of Munich, Germany.
    3. Sangeeta Dhawan & K. K. Saxena, 1992. "Sectoral Linkages and Key Sectors of the Indian Economy," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 27(2), pages 195-210, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:sch:wpaper:226. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (B B Chand).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.