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Food prices and the development of manufacturing in India

Author

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  • Richard Grabowski

    (Department of Economics, Southern Illinois University, Carbondale, Illinois 62901)

Abstract

Structural change associated with rapid growth has not occurred in labour-intensive manufacturing in India. It is argued in the present paper that this is at least partly due to the rise in the relative cost of labour, which is the result of the rising cost of food stemming from rapid overall growth and sluggish growth in agricultural productivity. A theoretical model has been developed and the experience of India is used to illustrate the model and its implications

Suggested Citation

  • Richard Grabowski, 2016. "Food prices and the development of manufacturing in India," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 23(1), pages 57-78, June.
  • Handle: RePEc:unt:jnapdj:v:23:y:2016:i:1:p:57-78
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    More about this item

    Keywords

    India; food prices; manufacturing;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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