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Changes in the Composition of Industrial Production: Testing for Structural Stability

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Listed:
  • L Krishna Veni
  • Pradeep Kumar Choudhury

Abstract

The economic development of India is mainly associated with the industrial development. This study attempts to analyze the structural changes that have taken place in industrial production with the help of index numbers. The results reveal that the capital and the basic goods have recorded relatively higher growth than the intermediate and the consumer goods in the pre-liberalization and vice- versa in the post liberalization period. The empirical results of the study indicate that the relationship between the Gross Domestic Product (GDP) and the contribution of industrial sector has undergone a structural change in India due to the initiation of the liberalized policies in 1991.

Suggested Citation

  • L Krishna Veni & Pradeep Kumar Choudhury, 2007. "Changes in the Composition of Industrial Production: Testing for Structural Stability," The IUP Journal of Managerial Economics, IUP Publications, vol. 0(3), pages 28-40, August.
    • Handle: RePEc:icf:icfjme:v:05:y:2007:i:3:p:28-40
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