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An alternative Indian model?


  • Grabowski, Richard


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.

Suggested Citation

  • Grabowski, Richard, 2009. "An alternative Indian model?," Journal of Asian Economics, Elsevier, vol. 20(1), pages 50-61, January.
  • Handle: RePEc:eee:asieco:v:20:y:2009:i:1:p:50-61

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    References listed on IDEAS

    1. Fan, Shenggen & Chan-Kang, Connie & Mukherjee, Anit, 2005. "Rural and urban dynamics and poverty: Evidence from China and India," FCND discussion papers 196, International Food Policy Research Institute (IFPRI).
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    9. Bourguignon, Francois & Morrisson, Christian, 1998. "Inequality and development: the role of dualism," Journal of Development Economics, Elsevier, vol. 57(2), pages 233-257.
    10. Yujiro Hayami & V. W. Ruttan, 1970. "Korean Rice, Taiwan Rice, and Japanese Agricultural Stagnation: An Economic Consequence of Colonialism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(4), pages 562-589.
    11. Lall, Sanjaya & Albaladejo, Manuel, 2004. "China's Competitive Performance: A Threat to East Asian Manufactured Exports?," World Development, Elsevier, vol. 32(9), pages 1441-1466, September.
    12. William Easterly & Jozef Ritzen & Michael Woolcock, 2006. "Social Cohesion, Institutions, And Growth," Economics and Politics, Wiley Blackwell, vol. 18(2), pages 103-120, July.
    13. 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.
    14. Jonathan R. W. Temple, 2005. "Growth and Wage Inequality in a Dual Economy," Bulletin of Economic Research, Wiley Blackwell, vol. 57(2), pages 145-169, April.
    15. Shujie Yao, 2000. "How Important is Agriculture in China's Economic Growth?," Oxford Development Studies, Taylor & Francis Journals, vol. 28(1), pages 33-49.
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