IDEAS home Printed from https://ideas.repec.org/h/spr/isbchp/978-81-322-1650-6_18.html
   My bibliography  Save this book chapter

Unit Root and Structural Break: Experience from the Indian Service Sector

In: Analytical Issues in Trade, Development and Finance

Author

Listed:
  • Purba Roy Choudhury

    (The Bhawanipur Education Society College)

Abstract

The purpose of this chapter is to analyse and examine the presence of unit root properties of the growth of the components ofIndia’s GDP at factor cost using annual data from 1950–51 to 2009–10. The paper tries to analyse the trends in the growth in India with special reference to the Indian service sector. The initial part of the paper undertakes the selective survey of literature. Next, the relative share of agriculture, industry and services in the gross domestic product(GDP) are analyzed for the Indian econiomy as a whole, along with the decomposition of service sectors in India. Along with traditional unit root tests like the Augmented Dickey-fuller and the Phillips Perron test, the procedure developed by Zivot and Andrews to test the null of unit root against the break stationary alternative are also used. These conventional unit root test results reveal that all variables are stationary. However, results from the Zivot Andrews test indicate all the growth series except transport, storage and communication are stationary with a single break. At the same time, the Zivot and Andrews test identifies endogenously the point of the single most significant structural break in every time series examined. Most interestingly, the single most significant break in the growth of the components of GDP in the Indian economy occurs at around 1965–66.

Suggested Citation

  • Purba Roy Choudhury, 2014. "Unit Root and Structural Break: Experience from the Indian Service Sector," India Studies in Business and Economics, in: Ambar Nath Ghosh & Asim K. Karmakar (ed.), Analytical Issues in Trade, Development and Finance, edition 127, chapter 18, pages 295-320, Springer.
    • Handle: RePEc:spr:isbchp:978-81-322-1650-6_18
    DOI: 10.1007/978-81-322-1650-6_18
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Purba Roy Choudhury & Biswajit Chatterjee, 2017. "Growth in India’s Service Sector: Implications of Structural Breaks," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 15(1), pages 75-99, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:isbchp:978-81-322-1650-6_18. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.