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Does Service Sector Growth Explain Manufacturing Growth in India?

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  • Sougata Ray

Abstract

: The Indian economy registered significant growth after liberalization in the 1990s. The service sector and the manufacturing sector have been significant contributors to the growth of the economy. In this paper, an effort is made to understand whether the growth in the service sector had any influence on the growth of the manufacturing sector by using the data for the period from 1970-71 to 2009-10. The results of cointegration test show that there is no long-term relationship between the growth in the two sectors.

Suggested Citation

  • Sougata Ray, 2013. "Does Service Sector Growth Explain Manufacturing Growth in India?," The IUP Journal of Applied Economics, IUP Publications, vol. 0(1), pages 68-76, January.
    • Handle: RePEc:icf:icfjae:v:12:y:2013:i:1:p:68-76
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