The historical roots of India's service-led development: A sectoral analysis of Anglo-Indian productivity differences, 1870-2000
India fell further behind the UK in terms of GDP per capita and overall labour productivity between the 1870s and the 1970s, but has been catching-up since. This paper offers a sectoral analysis of these trends. Comparative India/UK labour productivity in agriculture has declined continuously, and agriculture still accounts for around two-thirds of employment in India. Agriculture thus played a key role in India's falling behind and has subsequently slowed down the process of catching up. Although there have been substantial fluctuations in comparative India/UK labour productivity in industry, this sector has exhibited no long run trend. The only sector to exhibit an upward trend in comparative India/UK labour productivity is services. India's recent emergence as a dynamic service-led economy thus appears to have long historical roots. Although India has been characterised by relatively low levels of physical and human capital formation overall, its education provision has historically been unusually skewed towards secondary and tertiary levels. This has provided a limited supply of high productivity workers who have been employed predominantly in services.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Stephen N. Broadberry & Douglas A. Irwin, 2004. "Labor Productivity in Britain and America During the Nineteenth Century," NBER Working Papers 10364, National Bureau of Economic Research, Inc.
- Paul R. Bergin & Reuven Glick & Alan M. Taylor, 2004.
"Productivity, tradability, and the long-run price puzzle,"
Working Paper Series
2004-08, Federal Reserve Bank of San Francisco.
- Bergin, Paul R. & Glick, Reuven & Taylor, Alan M., 2006. "Productivity, tradability, and the long-run price puzzle," Journal of Monetary Economics, Elsevier, vol. 53(8), pages 2041-2066, November.
- Paul Bergin & Reuven Glick & Alan M. Taylor, 2004. "Productivity, Tradability, and the Long-Run Price Puzzle," NBER Working Papers 10569, National Bureau of Economic Research, Inc.
- Alan M. Taylor & Paul Bergin & Reuven Glick, 2005. "Productivity, Tradability, and the Long-Run Price Puzzle," Working Papers 511, University of California, Davis, Department of Economics.
- Bergin, Paul R & Glick, Reuven & Taylor, Alan M., 2004. "Productivity, Tradability and the Long-Run Price Puzzle," CEPR Discussion Papers 4494, C.E.P.R. Discussion Papers.
- Bela Balassa, 1964. "The Purchasing-Power Parity Doctrine: A Reappraisal," Journal of Political Economy, University of Chicago Press, vol. 72, pages 584-584.
- Robert J. Barro & Jong-Wha Lee, 2000.
"International Data on Educational Attainment: Updates and Implications,"
CID Working Papers
42, Center for International Development at Harvard University.
- Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
- Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment Updates and Implications," NBER Working Papers 7911, National Bureau of Economic Research, Inc.
- Chaudhary, Latika, 2009. "Determinants of Primary Schooling in British India," The Journal of Economic History, Cambridge University Press, vol. 69(01), pages 269-302, March.
- Ward, Marianne & Devereux, John, 2003. "Measuring British Decline: Direct Versus Long-Span Income Measures," The Journal of Economic History, Cambridge University Press, vol. 63(03), pages 826-851, September.
- Ward, Marianne & Devereux, John, 2004. "Relative U.K./U.S. Output Reconsidered: A Reply to Professor Broadberry," The Journal of Economic History, Cambridge University Press, vol. 64(03), pages 879-891, September.
- Stephen Broadberry & Bishnupriya Gupta, 2006. "The early modern great divergence: wages, prices and economic development in Europe and Asia, 1500-1800 -super-1," Economic History Review, Economic History Society, vol. 59(1), pages 2-31, 02.
- Stephen Broadberry & Douglas A. Irwin, 2007. "Lost Exceptionalism? Comparative Income and Productivity in Australia and the UK, 1861-1948," The Economic Record, The Economic Society of Australia, vol. 83(262), pages 262-274, 09.
- Timberg, Thomas A & Aiyar, C V, 1984. "Informal Credit Markets in India," Economic Development and Cultural Change, University of Chicago Press, vol. 33(1), pages 43-59, October.
- Barry Bosworth & Susan M. Collins & Arvind Virmani, 2007.
"Sources of Growth in the Indian Economy,"
NBER Working Papers
12901, National Bureau of Economic Research, Inc.
- Barry Bosworth & Susan M. Collins, 2007.
"Accounting for Growth: Comparing China and India,"
NBER Working Papers
12943, National Bureau of Economic Research, Inc.
- Broadberry, Stephen N., 1993.
"Manufacturing and the Convergence Hypothesis: What the Long-Run Data Show,"
The Journal of Economic History,
Cambridge University Press, vol. 53(04), pages 772-795, December.
- Broadberry, Stephen N, 1992. "Manufacturing and the Convergence Hypothesis: What the Long Run Data Show," CEPR Discussion Papers 708, C.E.P.R. Discussion Papers.
- N. F. R. Crafts & C. K. Harley, 1992. "Output growth and the British industrial revolution: a restatement of the Crafts-Harley view," Economic History Review, Economic History Society, vol. 45(4), pages 703-730, November.
- S. Mahendra Dev, 2008. "India," Chapters, in: Handbook on the South Asian Economies, chapter 1 Edward Elgar Publishing.
- Pilat, Dirk, 1993. "The Sectoral Productivity Performance of Japan and the U.S., 1885-1990," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(4), pages 357-375, December.
- Broadberry, Stephen, 2003. "Relative Per Capita Income Levels in the United Kingdom and the United States since 1870: Reconciling Time-Series Projections and Direct-Benchmark Estimates," The Journal of Economic History, Cambridge University Press, vol. 63(03), pages 852-863, September.
When requesting a correction, please mention this item's handle: RePEc:eee:exehis:v:47:y:2010:i:3:p:264-278. 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: (Dana Niculescu)
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.