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Economic Growth And Sectoral Linkages: Empirical Evidence From Odisha


  • Behera, Deepak Kumar

    () (Entrepreneurship Development Institute of India)


The present paper analyses the trends in sectoral shares in state domestic product and inter-sectoral linkages in Odisha for the period 1980-81 to 2011-12. Results drawn from Granger causality test suggest that there is a weak linkage between primary and secondary sectors in the growth process. In the case of primary and tertiary sector services, though the primary sector does not show linkages with the tertiary sector as a whole, it does have linkages with some important sub-services like trade, hotel and restaurant services. Between secondary and sub-sector of tertiary sectors, there is an independent relationship of industry with trade, hotel and restaurant, and community, social and personal services. However, there is a unidirectional causality between secondary to finance, insurance, real estate and business services on one hand and transport, storage and communication to secondary sector on the other. The long-run cointegration results show a strong relationship between secondary and TSC services in the economy on one hand and independent long run relationship within FIRB on the other. However, results based on error correction model indicate a weak association between the sectors in the short run. Though the linkage is significant between the sectors, but it is not linked with three sector analysis where primary sector is completely missing for a relatively faster adjustment towards long run equilibrium rate of growth.

Suggested Citation

  • Behera, Deepak Kumar, 2012. "Economic Growth And Sectoral Linkages: Empirical Evidence From Odisha," Journal of Regional Development and Planning, Rajarshi Majumder, vol. 1(2), pages 91-102.
  • Handle: RePEc:ris:jrdpin:0007

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    References listed on IDEAS

    1. Kanwar, Sunil, 2000. "Does the Dog Wag the Tail or the Tail the Dog? Cointegration of Indian Agriculture with Nonagriculture," Journal of Policy Modeling, Elsevier, vol. 22(5), pages 533-556, September.
    2. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    3. repec:ind:iegddp:70 is not listed on IDEAS
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    More about this item


    Growth; Sectoral Linkage; Odisha; Causality; Cointegration;

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes


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